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Dublin: 6 °C Friday 24 January, 2020

Twitter IPO boosts stock of bankrupt company Tweeter

In their excitement to get their hands on a piece of Twitter, investors bought over 11 million shares in a company that has been bankrupt for six years.

A Tweeter store in Boston after the close down of the company.
A Tweeter store in Boston after the close down of the company.
Image: PA Archive

IN THEIR EAGERNESS to get their hands on Twitter stock, investors have accidentally awoken a bankrupt company.

Tweeter, a home entertainment group that filed for bankruptcy in 2007, saw its share price shoot up over 1,500 per cent yesterday after the micro-blogging site announced their IPO.

While Twitter will file under the TWTR listing, Tweeter has a similar acronym: TWTRQ.

That confusion and the hope of making a quick buck saw 11.7 million shares bought in Tweeter by mid-day on the New York Stock Exchange.

Tweeter filed for bankruptcy in June of 2007 and its assets were acquired by Schultze Asset Management on according to a filing with the U.S. Securities and Exchange Commission.

However, those who sold high probably didn’t make out like bandits.

Despite a 1,500 per cent return on investment, the stock hit a high of 15 cents a share, before dropping to just over four cent.

Read: Twitter files a $1 billion IPO

Read: FBI shuts down site that sold $80m worth of drugs, hitmen services and other illegal items

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