Twitter's shares slump on report that potential bidders lose interest

Mon Oct 10, 2016 10:32am EDT
 
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(Reuters) - Twitter Inc's (TWTR.N: Quote) shares slumped more than 13 percent in early trading on Monday after a weekend Bloomberg report that top potential bidders, including Salesforce.com Inc CRM.N, had lost interest in making a bid for the company.

Salesforce, Alphabet Inc's (GOOGL.O: Quote) Google and Walt Disney Co (DIS.N: Quote), which had worked with banks on a potential acquisition, are unlikely to proceed, Bloomberg reported on Saturday, citing people familiar with the matter.

Twitter had planned to hold a board meeting with outside advisers on Friday to discuss a sale but canceled, Bloomberg reported, citing one person familiar with the matter. (bloom.bg/2dAlT7J)

Twitter's shares plunged about 20 percent over the final two days of last week after technology website Recode reported that Google, Disney and Apple Inc (AAPL.O: Quote) were not interested in the company, which put itself up for potential sale last month.

Twitter's stock fell to $17.21 on Monday, the lowest in more than two months.

At that price, the company has a market value of $12.18 billion, compared with almost $53 billion at its peak in December 2013.

Salesforce shares rose 5.3 percent to $74.65. Analysts and investors had raised concerns that a takeover of Twitter could severely hit the cloud software maker's market value.

Salesforce Chief Executive Mark Benioff had publicly expressed his interest in Twitter, but stopped short of saying the company would make a bid.

Twitter, struggling with stagnant user growth and continuing losses, had told potential acquirers it wanted any deliberations on a sale to conclude by the time it reported third-quarter results on Oct. 27, Reuters reported on Wednesday.   Continued...

 
People holding mobile phones are silhouetted against a backdrop projected with the Twitter logo in this illustration picture taken in  Warsaw September 27, 2013.   REUTERS/Kacper Pempel/Illustration/File Photo