Though Twitter is one of the most popular social platforms in the world, it has been losing money for investors. Besides lack of profitability, the microblogging platform has also been registering declining revenue growth as well as user growth. Consequently the share price of the company has fallen drastically from its 2014 high. In the face of those challenges some users of the platform have called for a fundamental and radical restructuring of the company to ensure that it is turned into user-owned co-op.
The users argue that since the content that is on the platform is created by the users, they should own a bigger stake in the company. And by turning the firm into a user-owned co-op, the social media service will no longer be under pressure from Wall Street to hit growth benchmarks. One of the users who is pushing for this is a housing policy activist in the Bay Area of California, Sonja Trauss and a shareholder of Twitter, Alex Chiang.
The two activists had earlier in the year called for a shareholder vote to decide whether to promote the buying of Twitter stock by users of the microblogging platform by making the stock readily available through the social media platform’s mobile app and website. The reasoning was that if users of Twitter got to own a small portion of the firm, then they would be in a better position to make decisions aimed at driving the company in the direction that they wanted it to take.
With the value of Twitter coming from the tweets posted by users since the microblogging platform earns digital advertising revenue by placing ads on such content, the idea was worthwhile view from the viewpoint of labor. And with users taking up control of the company, they would be able to reduce the influence major institutional shareholders including BlackRock which is the largest asset manager in the world as Twitter’s biggest shareholder, have over Twitter.
Additionally with ordinary users being the majority shareholders, they would not have much to lose in case the price of the stock stagnated or declined since each would own just a few shares. Twitter would thus be under less pressure from the brutal expectations of Wall Street.