Twitter shares climbed to their highest levels in nearly three months on Monday amid news that the social media site is teaming up with Bloomberg to create a round-the-clock video streaming news service and after chief executive Jack Dorsey bought more than 500,000 shares of the company last week.
The company, which suffered a tough 2016, gained as much as 6.1 per cent in early trading to $17.48, a level last seen in early February.
The share price move comes after the Wall Street Journal reported last night that the company will be joining forces with Bloomberg to create a new live streaming video channel. The partnership, which has yet to be named and is expected to begin operating this fall, will be announced later on Monday.
Twitter has been dogged by investor concerns about slowing user growth since it went public in 2013. Mr Dorsey, co-founder and the original creator of the tweet, returned to take the reins in 2015 promising new product changes to lure back users.
These include live video broadcasts – which reached 45m unique viewers during the first three months of the year, a 31 per cent increase from the previous quarter.
Mr Dorsey also revealed on Friday that he bought an additional 574,000 shares in Twitter. He paid around $16.6218 a share, according to a regulatory filing, meaning he spent more than $9.5m on the purchase.