Twitter stock surges after the social media giant began exploring sale


twitterTwitter Inc (TWTR.N) has initiated talks with several technology companies to explore selling itself, a person familiar with the matter said on Friday, signaling the start of what is likely to be a slow-rolling auction of the high-profile but money-losing social media company.

A sale of Twitter has been the subject of on-again, off-again rumors for many months as the company grapples with stagnant user growth, soft advertising sales and losses running at hundreds of millions of dollars a year.

The company’s business struggles have come even as the 10-year-old service has evolved into a potent global source of news, entertainment and social commentary.

CNBC, citing anonymous sources, reported on Friday that Twitter is in talks with companies including Google (GOOGL.O) and may receive a formal bid soon. A source told Reuters that (CRM.N) is also in pursuit.

Twitter and Alphabet Inc, Google’s parent company did not respond to a request for comment. Salesforce declined to comment.

Verizon, another company mentioned in media reports on Friday as a possible suitor, said it did not comment on M&A rumors but that it had not submitted a bid for the company.

Twitter shares jumped more than 19 percent to $22.22 per share on Friday, marking the largest one-day rise since their first day of trading in 2013. The company now has a market value of around $16 billion.

Morningstar analyst Ali Mogharabi said Alphabet would be the best acquirer for Twitter since it has not yet been able to crack social media on its own despite several efforts.

“From a strategic standpoint, we think it would be more beneficial for Alphabet as opposed to Salesforce,” Mogharabi said. Former Google executive Omid Kordestani is executive chairman of Twitter.

Twitter is working with investment banks Goldman Sachs and Allen & Co in considering possible transactions, sources familiar with the situation said.



3 responses to “Twitter stock surges after the social media giant began exploring sale”

  1. 5thDrawer Avatar

    “From a strategic standpoint, we think it would be more beneficial for Alphabet as opposed to Salesforce,” …. since Goldman Sachs doesn’t care much about our workers and salesforce – only about profiting.
    (something like adventures in home-sales …)

  2. 5thDrawer Avatar

    All the Twits should twitter this one …

    In late July, our government issued permits for the Site C Dam project on the Peace River in BC, betraying promises made to First Nations and putting business interests before environmental and human rights.

    Last week, the Liberals announced that they are keeping the same weak climate targets that the Harper Conservatives introduced, abandoning any real commitment to protecting our children from the catastrophic impacts of the climate crisis.

    And just last night, the Liberals approved the construction of the Petronas Pacific Northwest liquified natural gas (LNG) terminal in BC, which will devastate the wild salmon habitat and spew out carbon emissions equivalent to putting a million new cars on Canadian roads!

    During the election, the Liberals committed to “real change” in Canada’s climate policy. It’s been nearly a year, and all we’re getting are broken promises and flashbacks to the Harper decade.

    Stand with us and donate $1 today.
    I’m outraged the Trudeau Cabinet would go back on its word.
    Help us send a message — we’re watching, and we won’t let them get away with reckless decisions.

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