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How does Twitter make money? Good question. Many companies use it for Customer Service – as consumers have figured out it’s a great place to embrace a company into fixing a customer service issue that has not been resolved or just to get the brand’s attention. With the announcement of Silicon Valley investor Marc Andreessen and firm Silver Lake Partners, shares of Twitter jumped nearly 8%.

According to The Information, several investors in Silicon Valley are pulling together plans to buy or restructure the company. There have been conversations around an potential acquisition as some of the senior executives are changing guard, including the head of product and engineering, CEO Jack Dorsey, leaving last month.

One of the questions from investors is how quickly is Twitter adding new monthly active users? Last quarter, Twitter missed the Wall Street forecast, with only 307 M active monthly users. Twitter is used by many people to keep in touch, drive change in foreign countries, provide insights into what consumers think is value and whether they need Customer Service help. Some companies, like Dell, have used it to sell refurbished lap tops and generate revenue. Twitter also provides an invaluable source of customer data. The question for Twitter is what can they offer brands, that they would pay for? It will be interesting to see how one of the darlings of social media ends up!

@DrNatalie, VP and Principal Analyst, Constellation Research

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