Twitter shares drop 20% as takeover rumors fade away
Twitter has performed incredibly well on the stock market for the past couple of weeks. But the honeymoon is over as its back to reality and correction time. Twitter shares are currently down 20.06 percent to $19.88 compared to yesterdays closing price of $24.87.
So what happened? Recode has published multiple reports saying that many of the companies that were looking at Twitter for a potential acquisition backed away from the deal. Google, Apple and Disney dont want to buy Twitter anymore.
But Salesforce CEO Marc Benioff also hinted that Salesforce might not be buying Twitter after all. He made multiple comments about it in an investor meeting today.
All of this led Twitter to the current situation. Overnight, more than $2 billion in market capitalization disappeared. Maybe a lower price tag might convince a secret buyer that Twitter is worth buying.
Twitter went public in November 2013 and was worth $31 billion at the end of the first trading day. Today, Twitter is worth a little less than $15 billion. Back in June, Twitter was even more affordable with a market capitalization of $10 billion.
And for now, it seems like Twitter will have to operate as a standalone company.