Shares of Twitter dropped on Monday after a weekend Bloomberg report said the social media company was unlikely to receive any bids. Bobbi Rebell reports.
Twitter's suitors are reportedly taking a pass, sending shares of the social media platform plunging on Monday. Bloomberg reporting Twitter's best prospects Salesforce, Alphabet, and Walt Disney have lost interest, and that Twitter canceled a board meeting with outside advisers on Friday to discuss a sale. Twitter may have to face the reality that its continuing losses and stagnant user growth, will mean a lot less leverage if it want's to make a deal, says James Cakmak of Monness, Crespi, Hardt. (SOUNDBITE) JAMES M CAKMAK, CFA, MONNESS, CRESPI, HARDT & CO., INC, (ENGLISH) SAYING: "This is an asset that is still strategically important, because, one, they have the most robust and free marketing available around the world. Then, two, they have the interest graph of around 300,000 million users, so there's value there. But when you look at, you know, the revenue, the EBIDA as well as the valuation of per user basis, valuation with $10 to $15 billion range makes a lot more sense than some of the $20 - 30 billion numbers that we've heard in the media." Cakmak believes Twitter needs to be part of a larger company to resume growth. The best match? Alphabet-owned Google, which has the resources to help it grow. But, not only would that combination face regulatory issues, Google already access to Twitter resources through an existing deal, giving it less incentive to pay for what they, in many ways, already have.