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Twitter falls on report Google will not buy it


steven36

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SAN FRANCISCO —Twitter shares fell 9% in extended trading after a published report said Google would not bid for the struggling social media company.

 

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Recode said Apple was unlikely to buy Twitter either, deflating the stock that has soared on takeover speculation.

 

Marc Benioff, CEO of Salesforce.com, considered one of the more likely suitors for Twitter, also seemed to downplay his interest during an analyst meeting at his company's annual Dreamforce event in San Francisco.

 

"We look at everything, and we don’t buy most things, and we haven’t agreed to buy that company... it’s an unpolished jewel," he said Wednesday, emphasizing that Salesforce.com has a "disciplined M&A process."

 

Salesforce stock closed down 6% Wednesday on speculation that the company would buy Twitter. Shares rose about 1% in after-hours trading.

 

Walt Disney, the other company said to have contemplated a bid for Twitter, has decided not to move forward, Recode reported late Thursday.

 

According to Reuters, Twitter has said it wants to finish talks with potential buyers by the time it reports third-quarter earnings on Oct. 27.

 

 

Twitter founder Jack Dorsey returned to the helm last year to revive the company's sagging fortunes. User growth and revenue have flattened, prompting Twitter to engage in talks with potential buyers.

 

 

"We see many potentially interested in buying Twitter but continue to wonder whether it will be able to command a substantial premium given the recent significant appreciation and well-documented growth challenges," said CFRA analyst Scott Kessler who is maintaining a "hold" rating on the stock.

 

Of the 41 sell-side analysts tracking the stock, five rate it a buy, one outperform, 25 hold, three underperform and seven sell, according to S&P Global Market Intelligence.

 

Source:

http://www.usatoday.com/story/tech/news/2016/10/05/twitter-google-apple-salesforce/91641146/

 

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Millions USE Twitter but somehow I feel it doesn't really make a GOOD BUSINESS

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