Twitter's shares slump on report that bids are unlikely
Shares of Twitter Inc slumped more than 13 percent in premarket trading on Monday after a weekend Bloomberg report that the social media company was unlikely to receive any bids.
Salesforce.com Inc, Alphabet Inc's Google and Walt Disney Co, 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.
Twitter shares plunged about 20 percent over the final two days of last week after technology website Recode reported that Google, Disney and Apple were not interested in buying the company, which put itself up for potential sale in September.
Salesforce Chief Executive Mark Benioff had publicly expressed his interest in Twitter, but stopped short of saying the company would make a bid.
Twitter's stock, which closed at $19.85 on Friday, fell to $17.28 in premarket trading on Monday. At that price, the company has a market value of $12.23 billion, compared with almost $53 billion at its peak in December 2013.
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.
Many investors and analysts believe that Twitter, co-founded and run by Jack Dorsey, does not have a clear back-up plan if it is not acquired.