Twitter Keeps Fluttering As More Bidders 'Lose Interest'
Shares of Twitter Inc (NYSE: TWTR) were trading lower by more than 8 percent early Monday following a Bloomberg report which suggested the social media company is no longer being targeted for an acquisition.
According to Bloomberg, potential bidders reportedly lost interest in acquiring Twitter due to pressure from their major investors. Companies such as salesforce.com, inc. (NYSE: CRM), Walt Disney Co (NYSE: DIS) and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)'s Google unit all consulted with their respective financial advisers and bankers and the conclusion that was reached appears to be unfavorable for Twitter investors who were hoping a takeout would occur at a hefty premium.
Benzinga was first to report that Salesforce, once thought to be the only remaining company still interested in a bid for Twitter, will in fact not proceed with an acquisition.
Bloomberg's sources close to the situation also suggested that Twitter's Board of Directors had a meeting with its own advisers on a sale process, but cancelled the meeting on Friday.
Related Link: Here Is Every Twitter Takeover Rumor Of 2016
Bloomberg's report also stated that Twitter will now need to rely more heavily on several initiatives in place to boost user growth, including live video.
Twitter's partnerships with the National Football League to broadcast its Thursday night games does offer the opportunity to attract people without a Twitter account to the platform. However, Bloomberg pointed out its initiatives so far has failed to boost users or advertisers.
"The lack of growth in users and engagement underscore that Jack's initiatives thus far haven't really been effective," Bloomberg quoted Bob Peck, an analyst at SunTrust Robinson Humphrey as saying. "If this whole ‘live' idea doesn't work, then what is it that gets Twitter to grow?"
Shares traded at $18.20, down 8.3 percent in the pre-market session.
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