If Twitter Were An M&A Target, Who Would Want It?

For starters, Peck noted Twitter's stock is trading at a "large price" at 15x EBITDA with a roughly $15 billion market cap. As such, a 20 percent premium would put a price tag on any acquisition at around $18 billion. This does limit the total number of potential buyers, but here is a brief pro and con summary of mega-cap technology names that could in theory absorb Twitter.

Alphabet

• Pro: Alphabet Inc GOOG GOOGL could realize cost and revenue synergies by implementing Twitter's real-time feed in its search.
• Con: Alphabet would face anti-trust and FTC concerns and an acquisition may go against the company's new financial discipline.

Related Link: Twitter's Time May Be Running Out

Facebook

• Pro: Facebook Inc FB could see a strategic fit in an acquisition since it has been unable to leverage real-time content.
• Con: Facebook already has multiple platforms with more than one billion users.

Apple

• Pro: Apple Inc. AAPL could diversify its business outside of hardware and create a social presence.
• Con: Apple has less experience in ads and social.

Amazon

• Pro: Amazon.com, Inc. AMZN could move into the live content and media relations space while extending its advertising ambitions.
• Con: Amazon has other priorities and an acquisition of Twitter doesn't fit in its strategic view.

Microsoft

• Pro: Microsoft Corporation MSFT has shown an interest in online and social.
• Con: Enterprise and cloud appear to be a bigger focus for the time being.

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