No, We Are Not Buying Twitter Inc: News Corp

No, We Are Not Buying Twitter Inc: News Corp

Twitter is going through a rough phase as it struggles to add users. Amid all this, there were reports yesterday that News Corp is considering buying the micro-blogging firm. However, Rupert Murdoch company refuted the rumors, adding it has no plans to buy a stake in the social media firm.

Twitter a potential takeover target?

Following the takeover reports, Twitter’s shares climbed 14% on Wednesday, but eventually, the stock closed up 4.1% at $17.38. Tech website Re/code said the rumors became more intense after a CNBC segment. The company’s shrinking stock price makes it an apt takeover target, Re/code said.

“Twitter inside a larger organization definitely makes theoretical sense, whether its another internet company or a media company,” said James Cakmak of Monness, Crespi, Hardt, & Co Inc. “Even though News Corp denied the rumors, I do think this could help investors potentially see some valuations for the stock.”

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In the past also, there have been rumors regarding Twitter’s takeover. Previously, a fake report attributed to Bloomberg claimed that the micro-blogging firm received an acquisition offer for $31 billion. Also there have been reports that Twitter received bids from Alphabet and Facebook.

Twitter already has several high-profile investors. In October, former Microsoft CEO Steve Ballmer revealed that he had a 4% stake in Twitter, making him the third-biggest shareholder after Twitter co-founder Evan Williams and Saudi billionaire Prince Alwaleed bin Talal.

Dorsey not a billionaire anymore

Twitter cofounder and CEO Jack Dorsey is trying hard to make the site more engaging since re-joining as CEO a few months ago. In December, the company discussed plans to monetize non-active users, saying there are many people who read tweets without logging in, and for those people the company is testing a feature to show them ads.

After naming Dorsey permanent CEO in October, Twitter’s stock had fallen by nearly 41% up to Tuesday’s close. The drop in the stock has thrown Dorsey out of the list of billionaires, says a report from Forbes.

In after-hours trading yesterday, Twitter shares were up 0.92%. Year to date, the stock is down by almost 25%, while in the last month, it is down by over 24%. The stock has a 52-week high of $53.49 and a 52-week low of $15.48.

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