Twitter drops 9 percent after report that Google won't bid

Wed Oct 5, 2016 8:47pm EDT
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SAN FRANCISCO (Reuters) - Shares of Twitter (TWTR.N: Quote) slumped 9 percent late on Wednesday after Recode reported that Google, owned by Alphabet (GOOGL.O: Quote), would not move forward with a bid to acquire the social network.

Citing sources it did not identify, Recode also said that Apple (AAPL.O: Quote) was unlikely to be one of the possible suitors.

Twitter has told potential buyers it wants to conclude negotiations about selling itself by the time it reports third-quarter earnings on Oct. 27, people familiar with the matter told Reuters. Inc (CRM.N: Quote) is in the running, while Alphabet and Walt Disney Co (DIS.N: Quote) have also contemplated bids, the people told Reuters.

Twitter's stock was last down 9.21 percent in after-hours trade at $22.58.

The company has struggled to generate revenue growth and profit, despite having some 313 million average monthly active users and a growing presence as a source of news.

(Reporting by Noel Randewich; Editing by Sandra Maler)

The Twitter logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2016. REUTERS/Brendan McDermid/File Photo