Twitter (TWTR) Stock up Sharply After Alphabet Evaluates Bid
Shares of Twitter Inc. (TWTR) were trading up +1.25 or +5.42 percent to $24.30 in Friday’s aftermarket after Bloomberg reported that Alphabet Inc. (GOOG)(GOOGL) had hired investment banker Lazard Ltd to evaluate a potential acquisition of the company on Friday afternoon. Twitter stock closed at $23.05 per share, up +0.04 or +0.17 percent in Friday’s regular trading session.
Founded in 2006 by Jack Dorsey, Evan Williams, Noah Glass and Biz Stone, San Francisco, California based Twitter is a social media and microblogging service best known for allowing subscribers to “tweet”, or transmit messages limited to 140 characters, but able to send digital files such as photographs and videos.
Twitter had its initial public offering in September of 2013 opening at $26 per share and ending its first day up +18.90 at $44.90 per share.
Founded in 1998 by Sergey Brin and Larry Page, Mountain View, California based Alphabet Inc. is an international Internet corporation best known for its Google search engine. The company has been aggressively expanding into other information technology fields through acquisitions. In January of 2014, Google acquired Nest, a company that makes home appliances that connect to the Internet. Google had previously bought DeepMind and military robotics company Boston Dynamics. Other recent acquisitions include Skybox Imaging, Dropcam, Postini, and last month’s acquisition of Apigee Corp. (APIC) for $625 million.
While engaging the services of Lazard Ltd., Google, a subsidiary of Alphabet, has not yet indicated that it would definitely make an offer for Twitter, but puts Alphabet at the forefront of suitors along with the Walt Disney Company and Salesforce.com, which had previously expressed interest in buying the company. Neither Alphabet or Lazard Ltd commented on the matter.
Twitter for its part, has retained the services of Goldman Sachs (GS) and Allen & Co. to entertain bids from potential suitors after receiving interest from Salesforce.com according to sources familiar with the matter. Last week, Salesforce.com’s chief digital specialist, Vala Afshar, tweeted that an acquisition of Twitter by Salesforce.com made sense.
Ashfar’s tweet, “Why@twitter” listed four reasons why the social media company was an attractive takeover target, the tweet was as follows, “1) personal learning network, 2) the best real-time, context rich news, 3) democratize intelligence, and 4) great place to promote others.”
Google is seen as a natural fit for the struggling social media company. The two companies have already made advertising and mobile publishing deals, with Twitter recently agreeing to integrate content inside Google search engine results after a previous collaboration fell through.
Twitter stock has gained since Ashfar’s Salesforce.com tweet, which took place on September 23rd. Twitter stock is still trading below its original initial offering price of $26 per share, but will most likely test the level in this week’s trading.
Other News About TWTR
Can Salesforce.com Afford a Twitter Inc Acquisition?
Company is exploring other companies to acquire after losing LinkedIn to Microsoft.
Why Are Companies Flocking towards Twitter?
Four companies are considering a Twitter bid.
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