On Monday, shares of Twitter Inc. (TWTR - Analyst Report) 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 - Analyst Report) , Salesforce.com (CRM - Analyst Report) , and Alphabet Inc.’s (GOOGL - Analyst 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 - Analyst 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.
Stocks that Aren't in the News…Yet
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015, with a stellar average gain of +26% per year. See these high-potential stocks now >>