Face It, Twitter: They Just Weren't That into You

Madeleine Johnson Published on October 10, 2016

On Monday, shares of Twitter Inc. took a sharp nosedive, down over 13.5% in afternoon trading after Bloomberg reported over the weekend that potential bidders looking to acquire the social media company were backing off.

According to Bloomberg, Disney (DIS - Free Report) , Salesforce.com (CRM - Free Report) , and Alphabet Inc.’s (GOOGL - Free Report) Google division are all unlikely to continue to pursue a bid to buy Twitter. Sources told Bloomberg that Twitter had planned on having a board meeting to discuss a potential sale with outside advisers but cancelled. Bloomberg’s report comes after Recode wrote last week that neither Disney, Google, or Apple Inc. (AAPL - Free Report) are likely candidates to make a bid for Twitter.

Twitter, who has been struggling to grow its stagnant user base, has been at the center of merger and acquisition rumors for weeks now. The company has been making strides to fix its glaring user problems, including deals to live stream high-profile events like NFL and MLB games and the current presidential debates.

In light of this development, Twitter is now set to focus its energy into its live video streaming partnerships, said Bloomberg. “It may give people without Twitter accounts a new way to use the service, while allowing the company to share revenue on the video ads…[but the] fledgling effort hasn’t yet significantly boosted users or advertisers on the platform known for its 140-character messages,” Bloomberg continued.

However, it’s still not certain if acquisition talks are completely over for Twitter. There are apparently multiple other parties still interested in scooping up the company, says CNBC.

For more information on Twitter’s potential sale, check out Episode #14 of the Zacks Friday Finish Line podcast:

Currently, TWTR is a #3 (Hold) on the Zacks Rank. While the stock has gained over 9.7% over the past three months, shares of TWTR have fallen more than 35% in the past one year.

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