Market Overview

Recode Speculates Why Amazon Would Want To Acquire Twitter

Share:
Recode Speculates Why Amazon Would Want To Acquire Twitter

The Twitter Inc (NYSE: TWTR) acquisition rumor mill is back in full force but with a new name involved. E-commerce giant Amazon.com, Inc. (NASDAQ: AMZN), fresh off its acquisition of Whole Foods, should acquire the social media company, according to Recode's Kurt Wagner.

Many investors and analysts continue operating on the assumption that Twitter will ultimately be acquired after years of sluggish growth and no profits, Wagner explained. As such, Twitter would likely be better off with Amazon acting as a "more stable parent" to guide it and spur growth. After all, Twitter should be considered to be "the most relevant it's ever been," mostly due to President Donald Trump who uses the platform daily to communicate with the public.

But beyond Trump, there are other reasons Amazon would find Twitter attractive, Wagner continued. The company is still the best platform for users to discover real-time information, but at the same time it hasn't perfected the commerce side of the business — something that Amazon could "easily make it work."

In addition, Amazon's growing advertising business, when combined with Twitter's large amount of data on mobile users, seems like a rational combination. Also, Twitter is positioning itself to be a leader in live video, which conveniently appears to be a similar ambition at Amazon.

Finally, Amazon's CEO Jeff Bezos already owns The Washington Post so he is no stranger to media, Wagner added. He bought the struggling media company and turned it around to become profitable and may be able to do the same with Twitter.

"Putting the company under Amazon's umbrella would give Bezos time to figure out the best way to value Twitter without watching its business get ripped by the media and Wall Street every three months," Wagner concluded.

Related Links:

False Hope: The Street Believed Twitter & Salesforce Rumors For Too Long

Google To Bid For Twitter? That's The Latest Rumor Moving The Stock

Posted-In: Donald Trump Jeff BezosM&A News Rumors Top Stories Tech Media Best of Benzinga

 

Related Articles (AMZN + TWTR)

View Comments and Join the Discussion!
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Tech Tempts, But Valuations Look High

Barron's Picks And Pans: First Solar, General Dynamics, Tesla And More