Former Microsoft enthusiasm battering ram Steve Ballmer is the latest tech giant to be connected to a possible acquisition of Twitter, with rumours linking Ballmer to the perpetually-for-sale social site causing its share price to rocket by seven per cent yesterday. Soon after, Bob Peck of SunTrust Robinson Humphrey dismissed the rumors saying that the deal is extremely unlikely to happen.
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But CNBC reported Wednesday that such a takeover bid is unlikely.
CNBC’s Scott Wapner, during the company’s “Fast Money: Halftime Report”, a short while ago, poured some cold water on rumors today that have driven up shares of Twitter (TWTR). Peck said the board is “100 percent behind CEO Jack Dorsey and his turnaround plans”.
The decline in Twitter’s stock has led to ongoing speculation that the company could be a takeover target.
Other analysts have speculated that Twitter could be purchased by a large media company. “We see value in the company’s global platform, offerings and balance sheet, but think a notable activist investor or strategic acquirer would likely have to drive an acquisition of [Twitter], whose market cap is over $11 billion”.
Still, Ballmer, who announced in October that he had bought a 4% stake in Twitter, has shown an interest in the company’s potential before.
Twitter has a market capitalisation of around $12bn.
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Representatives for Ballmer and Prince Bin-Talal did not immediately return requests for comment.
