Analyst Concerned Over Salesforce's Recent Interest In Making Big Acquisitions That Don't Have Logical Fit
Shares of Twitter Inc (NYSE: TWTR) soared higher by nearly 20 percent Friday following a report the company may be one step closer to selling itself than previously thought.
One of the companies named in the CNBC report, salesforce.com, inc. (NYSE: CRM), saw its stock trade lower by nearly 5 percent. Investors may not be seeing the rationale behind the deal.
Speaking to Benzinga, William Blair analyst Bhavan Suri said talks of a Salesforce interest in Twitter "doesn't come as a surprise" but he doesn't quite understand the logic behind a deal.
He said an acquisition of Twitter by Salesforce isn't "strategic" or "synergistic" given Twitter's user growth and engagement challenges. Moreover, the analyst is concerned over Salesforce's recent interest in making large acquisitions that doesn't seem to have a logical or strategic fit.
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