Twitter Shares Jump on Speculation About Takeover Interestby and
News Corp. denies report it wants a stake in Twitter
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Twitter Inc. rebounded from a record low on speculation that News Corp. may be interested in acquiring all or part of it -- a possibility that the media conglomerate swiftly denied.
Twitter has long been rumored as a takeover candidate, so once the stock got low enough to spark renewed speculation, it jumped on Wednesday, according to Brian Wieser, an analyst at Pivotal Research. That happened a day after Twitter slumped to a new all-time low, following outages to the company’s website and mobile services over the weekend.
“Looks like opportunistic buying,” Wieser said. “Twitter should have a price floor given potential for acquisition in the long run.”
This time, the speculation centered on a CNBC report that News Corp. was potentially interested. Jim Kennedy, a spokesman for News Corp., said the media company isn’t pursuing San Francisco-based Twitter.
Twitter gained 4.1 percent to $17.38 at the close in New York, after earlier climbing as much as 14 percent. Still, that remains far below the company’s $26 initial public offering price in November 2013. The stock is down 25 percent this year, following a 35 percent decline in 2015.