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Twitter's Stock Has Best Day Ever Amid Buyout Rumor

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Twitter's Stock Has Best Day Ever Amid Buyout Rumor

Shares of Twitter Inc (NYSE: TWTR) gained more than 20 percent on Friday, driven by yet another rumor about the company being in takeover talks. Potential suitors include Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) and salesforce.com, inc. (NYSE: CRM).

A representative for Twitter declined to comment, while Google did not respond to requests for commentary.

Salesforce spokeswoman Jane Hyne answered said, “We do not comment on rumors and speculation."

Related Link: Here Is Every Twitter Takeover Rumor Of 2016

Despite the speculation, Citi's Walter Pritchard weighed in on the issue, explaining why the deal would not make sense for salesforce.

"While Twitter is involved in the customer service process, we don’t believe it is necessary for salesforce to own Twitter to be able to use it as a medium for customer service. Also, we don’t believe that if someone else bought Twitter, salesforce would be prevented from using Twitter as they do today. Our response, if CRM were to buy TWTR, would be negative. Twitter is profitable and while back of the envelope the deal might not be dilutive, we believe it would fuel concerns that CRM is de-focusing on for “customer” area in a quest to stretch for growth."

Twitter is working on a restructuring that could include divestitures and redundancies as it struggles to drive user growth.

Shares closed at $22.62, up 21.4 percent.

Posted-In: Analyst Color M&A News Rumors Movers Tech Best of Benzinga

 

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