Thursday, October 6, 2016
Twitter stock plunges 19% on report that Google and Disney won't make a bid
Twitter stock plunged 19% on Thursday morning following reports that Google and Disney would not pursue a formal bid for the social network.
Sources cited by Recode's Kara Swisher and Kurt Wagner say Google does not currently plan to make a bid and was not moving forward with any effort to do so. Apple making an acquisition offer was also "unlikely," according to Recode.
Twitter has reportedly told potential acquirers that it wants to conclude selling negotiations by its third quarter earnings report on Oct. 27. Google was one of the top names on the potential acquirer list, along with Salesforce and Disney.
Twitter stock rose early on Wednesday on a WSJ report that Salesforce's CEO Marc Benioffconsidered the company to be an "unpolished jewel." It closed up 5.74% on Wednesday, but nose-dived in after-hours trading and Thursday morning on the reports that Google would be out of the running.
Despite the talk of the acquisition, Twitter CEO Jack Dorsey has remained steadfast in his desire to keep it an independent company.
According to people familiar with the matter who spoke with Bloomberg's Sarah Frier , Dorsey was opposed to selling Twitter as recently as September 8, when Twitter held a board meeting to discuss the company's future.
According to the piece, there isn't a consensus within the company as to what should happen in the coming weeks and months. Dorsey wants Twitter to "remain on its current course and work to capitalize on recent product improvements and success in streaming live video," according to Bloomberg.