Twitter’s stock received a healthy boost Wednesday afternoon thanks to market speculation that the media giant News Corp may be interested in some kind of acquisition or stock takeover.
Twitter’s Stock Surged, Then Slipped on Takeover Speculation
Investors jumped at the news that Twitter may be a possible takeover target.
Anthony Quintano for Re/code
Update: Jim Kennedy, a spokesperson for News Corp, simply told Re/code, “The rumor’s untrue.”
Twitter stock, which was trading at an all-time low earlier in the day, shot up more than 12 percent at one point, but has since dropped down closer to 4 percent gains on the day.
The News Corp rumors were buoyed by a segment on CNBC Wednesday in which Twitter was evaluated as a takeover target due to the company’s lower-then-ever stock price. We are looking into where that News Corp rumor started but have yet to find any truth to it.
A Twitter spokesperson declined to comment on the rumors.
This is not the first time Twitter has been floated as a takeover target, either via acquisition or by an activist investor. The company stock is near an all-time low and, as a result, its market cap is just over $11 billion.
Update: Bloomberg reporter Alex Barinka tweeted out that there was a big purchase of Twitter shares initiated this afternoon right round the time the rumors started gaining steam. So at least one entity is very interested in Twitter’s prospects — either as a company or as a takeover target.
https://twitter.com/alexbarinka/status/689880348285652993
This article originally appeared on Recode.net.
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