This is Huge For Twitter Stock
Twitter Inc (NYSE:TWTR) stock continues to make headlines as the market speculates over who will emerge as the final winner in this bidding war. Amid many reports, here comes another one that gives the biggest hint about who could possibly take this prized possession. This also means that, as the battle for acquisition intensifies, more gains are expected for TWTR stock.
Twitter Inc is expected to field bids this week, which means that the deal is likely to close sooner rather than later. However, what has got the markets excited is the clear intention displayed by salesforce.com, inc. (NYSE:CRM) CEO Marc Benioff, who called the social media platform an “unpolished jewel.” He has been making a case for how Twitter could be a valuable acquisition for its rich data, as well as for its strong brand. (Source: “Twitter Is Expected To Field Bids This Week,” The Wall Street Journal, October 4, 2016.)
Twitter has already elicited strong interest from other players like Alphabet Inc (NASDAQ:GOOG) and Walt Disney Co (NYSE:DIS), who are reported to be working with their financial advisers. TWTR stock has gained over 20% on the back of such acquisition news. Twitter’s real-time data, as well its newly launched video streaming service, has potential to add value to these companies.
However, the salesforce.com CEO has been the most vocal so far about his company’s inclination to make this acquisition. According to reports, Benioff thinks Twitter has huge potential in many data-rich applications that can be leveraged for the next phase of growth for salesforce.com.
It appears that the results may soon be out as to who will get to own the blue bird. The only sure thing is that it shall lead to further gains for Twitter stock. Both salesforce.com and Twitter have been trend-setters in their industries, however Twitter has stagnated for a while, whereas salesforce.com has gained from the tremendous growth in cloud-based business. It may be a big challenge for salesforce.com to pull this off but, from what can be gauged from Marc Benioff’s statements, he appears to be ready for this challenge.
This could push the TWTR stock price higher as more resolute suitors emerge in this takeover battle. A strong indication from these reports is that salesforce.com may be the first one to officially bid for the social media giant Twitter Inc this week. Investors will be glued to every piece of information that flows from Twitter Inc in the coming days.