Market Overview

Twitter Buyout Odds Are At The 'Greatest' Right Now

Share:
Twitter Buyout Odds Are At The 'Greatest' Right Now
Related TWTR
Benzinga's Option Alert Recap From July 20
Forget FANG, Trade FATS: A Preview Of Facebook, Alphabet, Twitter And Snap Earnings

Twitter Inc (NYSE: TWTR) is once again rumored to be open to a sale. This time, Google Inc (NASDAQ: GOOG) and Facebook Inc (NASDAQ: FB) are the rumored buyers.

The unconfirmed details come from Fox Business Network's Charlie Gasparino, who tweeted about the situation on Tuesday afternoon:

Shares of Twitter spiked higher on Tuesday, recently up 0.35 percent at $34.78 on the day after trading mostly in the red.

Twitter expert Sean Udall quickly weighed in on the matter.

"I don't know [Gasparino] personally," Udall, who serves as the CIO of Quantum Trading Strategies and is the author of The TechStrat Report, told Benzinga. "He's obviously a guy who likes to make headlines. However, he did some of the absolute best reporting during the financial crisis on potential takeover deals. He nailed a bunch of them. I think historically he's been a very good M&A reporter. He seems to be a guy who's very well connected and would have a lot of good sources."

That said, Udall isn't sure any news has been reported yet. He said that Gasparino's report isn't that different from what Twitter's outgoing CEO, Dick Costolo, told investors.

"He all but said he was open to a deal," said Udall. "If all they're saying is [that] Twitter is open to a deal, that's not new news. The new news would be, have they been approached about a deal? That would be new news. The news that, hey, will they willingly accept or be open to it? They've said they would on other occasions."

Udall said that in many cases interim CEOs are never actually replaced because they were brought in to secure an M&A deal.

"The window of opportunity to buy Twitter right now is the greatest for this quarter and the next quarter," he added.

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.

Posted-In: Charlie Gasparino Facebook Fox Business Network GoogleAnalyst Color Rumors Exclusives Tech Best of Benzinga

 

Related Articles (GOOG + FB)

View Comments and Join the Discussion!