The stock price of Twitter Inc (NASDAQ: TWTR) surged almost 6% today after co-founder Evan Williams said the company must consider the right options amid takeover speculations.
During an interview with Emily Chang on Bloomberg TV, Evans declined to comment when asked if he sees Twitter remaining as an independent company. However, he said, “We are in a strong position right now. I think as a board member; we have to consider the right options.”
The next acquisition target
Market observers have been suggesting that Twitter is the next acquisition target in the technology industry as the company continues to struggle. The M&A speculation heats up after Microsoft Corporation (NASDAQ: MSFT) announced its agreement to acquire LinkedIn Corp (NYSE: LNKD) for $26.2 billion in June.
At the time, Peter Garnry, the head of equity strategy at Saxo Bank commented that Alphabet Inc (NASDAQ: GOOG), the parent holding company of Google might be interested in buying Twitter to strengthen its position in social media.
“It is difficult long-term to see Twitter as a standalone company,” he said. “We are betting more now that this will be an acquisition before the year-end,” said Garnry.
Earlier this month, it was rumored that former Microsoft CEO Steve Ballmer was partnering with Saudi Prince Alwaleed bin Talal Al Saud to acquire the microblogging company.
Twitter unlikely to sell in the early stages of its turnaround
Wall Street analysts dismissed the speculation. SunTrust analysts Robert Peck commented that it was “extremely unlikely that Twitter would want to sell currently” as the company is still in the early stages of its turnaround effort.
Ballmer previously told Business Insider that Twitter “had a bit of a tough run from a stock price perspective,” but he believed that it would continue to a great company over the long-term.
Twitter co-founder Jack Dorsey once again assumed the position of chief executive officer in October to fix its products and reputation. Investors have been concerned due to its stagnating user base, which resulted in the decline of its stock.
TWTR stock traded between $13.73 per share and $31.87 per share over the past 52 weeks. The stock is still down more than 30% over the previous year or 16% year to date. It is trading at $19.27 per share, up by 4.84% around 3:26 in the afternoon on Wednesday.
Williams told Bloomberg that he supports Dorsey, and has high faith in him. He expressed optimism that the company could regain its stock price. He also emphasized that Twitter is providing a real-time information layer, which he considered an “incredibly valuable service” and can be a “lot more valuable.”