Social networking giant Twitter’s shares rose by more than 20% on Friday after CNBC reported that it is likely to receive a formal buyout bid from major technology companies including Google and Salesforce.com. Unnamed officials told the American news channel that “several technology or media companies” were in talks with Twitter.
The report added that while Twitter’s board of directors are interested in a deal, “no sale is imminent”. However, other officials were quoted as saying a deal could be reached as early as the end of this year.
Twitter’s shares were trading at $22.43 (approximately Rs 1,500) on Friday morning. When it went public in 2013, it was priced at $26 (approximately Rs 1,735). It has since faced a slowdown, with revenues falling and the number of users plateauing. According to the Wall Street Journal, the company has reported eight straight quarters of declining revenue growth, the last one its lowest yet at 20%. Salesforce.com’s stock fell by 4.5% on Friday morning.
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