2023-03-28 07:31:00 ET
Customer engagement expert Twilio (NYSE: TWLO) just made a small but telling change to its business plan. The development platform provider is shedding its Internet of Things (IoT) business, also known as the Twilio Wireless unit. The company is leaning into its core strengths right now, while passing the IoT torch to a microcap called KORE Group Holdings .
Twilio's IoT diet plan involves KORE sending over 10 million shares of its common stock, or roughly 11.5% of the IoT solutions specialist's issued and outstanding shares. With KORE's current share price of $1.48, the deal's total value stops near $15 million. While this may seem like small potatoes compared to Twilio's $3.83 billion revenue in 2022, it's important to look beyond the simple dollar signs.
The IoT business may not be Twilio's bread and butter, but management always took it quite seriously. In the Q2 2021 earnings call , for example, Twilio CEO Jeff Lawson expressed optimism for the future of IoT, citing Twilio's Super SIM platform as a game-changer for global IoT device deployment. This software-based system reduces the risk of missing out on future networking improvements in the IoT world:
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Twilio's Trombone Twist: IoT Handoff to KORE Hits the Right Chord