Twitter shares tumble 12% as early bid deal cools
The social media company had attracted interest in recent weeks from Alphabet’s Google, Salesforce.com, and Walt Disney, all of which had consulted with banks on whether to pursue a bid.
Now all of those suitors are unlikely to make an offer, according to people familiar with the matter.
On Friday, Twitter had planned to have a board meeting with outside advisers on a sale but cancelled, one source said.
The stock was down to $17.31 (€15.52) at one stage in New York trade.
Twitter shares had closed at $24.87 in New York on October 5 after reports emerged that some companies were mulling an offer. The shares have lost a quarter of their value this year.
San Francisco-based Twitter had pursued a sale amid difficulty significantly boosting users or advertisers, though its leadership was split on the decision.
The board had hired Goldman Sachs and Allen & Co to pursue a sale in September.
Chief executive Jack Dorsey had opposed a sale, while co-founder and board member Ev Williams backed one. However, investors have pressured the companies considering a takeover to back down, according to people familiar with the matter.
At Salesforce’s investor conference last week, investors told executives they weren’t pleased with the notion of a Twitter buyout.
Twitter has considered other solutions, such as divestitures of assets not central to its business, people familiar with the matter have said.
If a buyer does not appear, Twitter will to try to appeal to more users through a new strategy that emphasises live video.
The company has been entering partnerships for sports, politics, and entertainment content — such as the US National Football League’s Thursday night games — that it can stream alongside tweets related to the video.
It may give people without Twitter accounts a new way to use the service, while allowing the company to share revenue on the video ads.
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