Twitter Inc (NYSE:TWTR) stock surged on Thursday in heavy trading volume as takeover talk resurfaced yet again. The shares were on track to close at their highest level in more than a year—with almost no news driving it. It’s been a while since we’ve heard any Twitter buyout rumors, but it sounds like they could be back.
Those Twitter buyout rumors are back
Trading in Twitter stock was heavy on Thursday, reaching 23 million shares, versus the 30-day average daily volume of approximately 16.4 million shares, as recorded by FactSet. Twitter stock was up by as much as 7.3% at one point before it reversed course, and yet, investors seemed driven by an invisible force as bigger tech names, such as Facebook stock, failed to move the needle much.
The Street suggests that the return of those Twitter buyout rumors could be driving the company’s stock today. The website said the dramatic rise appeared to be driven by “trader rumors” of a potential deal for the micro-blogging platform in light of Walt Disney’s acquisition of most of Twenty-First Century Fox’s entertainment assets, which was announced today.
5 Charlie Munger Quotes Every Investor Should Know
Where did the Twitter buyout rumors come from this time?
According to The Street, it appears that Fox Executive Chairman Rupert Murdoch may have inadvertently ignited new Twitter buyout rumors among traders by simply saying that the company won’t just disappear. He said that after the sale to Disney closes, Fox will still be able to make acquisitions, adding that they will “be in a mood to expand and to do new things” and that they will “have the ability” to do it.
Murdoch didn’t say whether the media firm might go private. However, he did address the speculation that a combination with his News Corp might become a consideration “way, way in the future,” although he also said that they hadn’t thought about it yet.
Jumping to conclusions?
It doesn’t appear that any sources are talking about the possibility of a buyout for Twitter, if one even exists. It’s been over a year since we last heard any serious reports that the micro-blogging platform was looking to sell itself. Disney was one of those that had been said to be interested in acquiring it, but all the potential suitors walked away. Since then, analysts have brought back speculations of a buyout for Twitter, but that’s all it has been.
At this point it seems safe to say that if Twitter buyout rumors are circulating on the trading floor, it’s among those who are jumping to conclusions.