Twitter Inc (TWTR) Takeover Rumors False According to News Corp, Still May Be Takeover Target


Yesterday was quite the day for Twitter Inc (NYSE:TWTR) shareholders as the stock tumbled out of the gate. Then at approximately 11 a.m. ET, after the stock bottomed at a new all time low of $15.48, rumors began to circulate that Rupert Murdock and News Corp may have interest in either taking over the company, or buying a significant stake.

Shares shot up to as high as $18.83, or 30% from their intraday lows, as investors began to believe that the rumors could be true. That’s until this morning when News Corp made an official announcement that rumors are ‘untrue’. With that said, Miriam Gottfried of the Wall Street Journal came out this morning with a report stating that Google, Facebook, Time Warner and 21st Century Fox could all have some interest in a Twitter Inc (NYSE:TWTR) takeover, with Google seemingly being the main player.

It will be very interesting to see how shares react at the opening bell and in the pre-market this morning after the rumors have been falsified. The stock increased 4.19% or $0.7 on January 21, hitting $17.39. About 729 shares traded hands. TWTR has declined 50.09% since June 16, 2015 and is downtrending. It has underperformed the S&P500 by 41.22%.

From a total of 29 analysts covering Twitter (NYSE:TWTR) stock, 12 rate it a “Buy”, 2 a “Sell”, and 15 a “Hold”. This means that 41% of the ratings are positive. The highest target price is $56 while the lowest target price is $21.0. The mean of all analyst targets is $33.79 which is 94.31% above today’s ($17.39) stock price. Twitter was the topic of 47 analyst reports since July 23, 2015 according to the firm StockzIntelligence Inc. Mizuho initiated shares on January 13 with a “Neutral” rating. Morgan Stanley maintained shares with a”Underweight” rating and a $22 target share price in their report from an October 28. M Partners maintained TWTR stock in a recent report from November 16 with a “Neutral” rating. Barclays Capital maintained the rating on October 28. Barclays Capital has a “Equal-Weight” rating and a $33 price target on shares. Finally, RBC Capital Markets maintained the stock with a “Sector Perform” rating in a report they issued on an October 28.

The institutional sentiment decreased to 1.07 in Q2 2015. It’s down 0.19, from 1.26 in 2015Q2. The ratio dived, as 102 funds sold all their Twitter Inc shares they owned while 129 reduced their positions. 56 funds bought stakes while 191 increased their total positions. Institutions now own 269.03 million shares which is 10.40% less than the previous share count of 300.24 million in 2015Q2.

Institutional Venture Management Xii Llc holds 100% of its total portfolio in Twitter Inc, equating to 418,115 shares. Rizvi Traverse Management Llc owns 2.80 million shares representing 100% of their total US portfolio. Moreover, Ah Equity Partners Iii L.L.C. has 69.57% of their total portfolio invested in the company, equating to 1,202 shares. The California-based Kpcb Dgf Associates Llc has a total of 28.35% of their portfolio invested in the stock. Bain Capital Venture Investors Llc, a Massachusetts-based fund reported 817,155 shares owned.

Twitter, Inc. is a global platform for public self-expression and conversation in real time. The company has a market cap of $11.40 billion. The Firm offers services and products for users, advertisers, developers and platform and data partners. It currently has negative earnings. Products and services for users enables a way for people to create, distribute and discover content, which enables a user on Twitter to create a tweet and a user to follow other users.