Friday, September 23rd, 2016

US stocks shake over talks on Twitter Takeover by Google, Salesforce

Narada Desk | September 23, 2016 10:00 pm Print
Twitter's shares dipped to more than 21% on Friday morning after the opening of the trading. Currently it is at priced $22.61
Twitter

Nasdaq jolted on Friday as talks of an imminent take over of Twitter dominated. CNBC said, Twitter has got some good response for its sale deal from “several technology companies”.

The twitter board, “is said to be largely desirous of a deal,” said the report quoting sources. The major contenders for the deal are Google and CRM added the report.

Twitter’s shares dipped to more than 21% on Friday morning after the opening of the trading. Currently it is at priced $22.61, far below its highest-ever mark of $74.73 recorded on its November 2013 IPO.

Even a fast-paced deal will not help those investors who put their faith on the share and hold on to it all these years.

Danton Goei, working with New York’s Davis Funds, was quoted as saying to Forbes that, Twitter is not a good option now due to the factor of its stability.

“An NFL game is not going to be better on Twitter [than on TV],” Goei told. “There is some value there, but they’re trying to become the next Facebook and they’re really a niche for news junkies. They’re not for everybody,” he added.

If Google is interested in Twitter’s real-time search abilities and and its social network as significant factors then it may go to take over Twitter.

For Twitter, a take-over by a bigger tech firm will help it to fix issues and recover from performance comparisons with Facebook.

Though some predict that the deal may not work out as — 8.7% of the float is short — but recent take over of another social network, LinkedIn, by Microsoft, might prove them otherwise.
Twitter has tried to recover and revitalize in last one year under its co-founder and current CEO Jack Dorsey.
It tried reduce many deals, to improve user numbers growth and creating more value out of existing current community

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