Friday, September 23, 2016

The Transport Guy: Twitter stock skyrockets on report that Google and Salesforce are interested in buying the company (TWTR)

Steven Tweedie and Steve Kovach September 23, 2016 at 06:06AM

Jack Dorsey

Twitter stock has skyrocketed more than 20% on a Friday morning report from CNBC that the company is moving closer to a sale, and that Google and Salesforce are among the interested suitors.

Google and Salesforce aren't the only companies eyeing Jack Dorsey's startup, with the report noting "several" potential bidders.

TechCrunch is reporting that Verizon is also interested. A Verizon spokesperson declined to comment to Business Insider.

A source familiar with Verizon M&A says there have been no talks between the two companies.

TechCrunch also reports that Microsoft might be interested in buying Twitter. We've reached out to Microsoft for comment.

A formal bid could be submitted soon, though CNBC notes that a Twitter sale is still a ways away.

A sale by the end of the year is within the realm of possibility, according to CNBC's source.

While Google's name has been floated frequently over the past year as a likely candidate to potentially buy Twitter, Salesforce joining the fray of interested companies comes as a bit of a head-scratcher.

Salesforce exec Vala Afshar tweeted out a short breakdown of "Why Twitter?" on Friday morning, highlighting the company's network, realtime news, and promotional platform as reason why the enterprise company is interested.

However, Afshar later clarified that those were just his own personal views:

Twitter's stock has been under pressure for months, as the company struggles to boost user growth. Its plummeting value has sparked constant speculation that Twitter could become an acquisition target.

Twitter and its board reportedly discussed cost cuts and a potential sale during a big board meeting on September 8, though the company didn't have any bids at the time.

Twitter stock

The company has continued to roll out new features over the past month, but given Wall Street's reaction to Friday's report, it's far more interested in a sale.

Business Insider has reached out to Twitter, Google, and Salesforce for comment.

You can read CNBC's full report here.

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Twitter stock skyrockets on report that Google and Salesforce are interested in buying the company (TWTR) from Business Insider: Steve Kovach

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