NewsCorp supreme Rupert Murdoch confirmed that the company has no interest in buying social media giant Twitter and stated the rumours as untrue.
Twitter’s stock prices witnessed a huge swing on Wednesday afternoon to 14 percent and closed up at 4.1 percent to US$17.38 (AU$24.8). The rise in the social media website stocks spread speculations of NewsCorp’s interest in taking over it. The point where the rumour started from is yet to be known, but the speculations intensified when CNBC’s Re/code reported that Twitter was the biggest takeover target of news giant NewsCorp following its swinging stock value. Both NewsCorp spokesman Jim Kennedy and the Twitter spokesperson denied the claims of any such acquisition being planned.
Few months after the return of Jack Dorsey as the chief executive, Twitter has been making efforts to make the site even more engaging for internet surfers. In December, the company said that it was working on a feature through which ads will be displayed to those who read tweets without logging in. This will enable the company to reap profits from non-active users as well.
The social media giant has remained the target of acquisition speculations for a long time now including the fake Bloomberg’s report that claimed the company received an offer to be acquired worth US$31 billion (AU$44 billion). “Twitter inside a larger organisation definitely makes the theoretical sense, whether its another internet company or a media company,” Reuters quoted Monnes, Crespi, Hardt & Co. Inc. analyst James Cakmak as saying.
Cakmak said that though Newscorp denied the claims of acquiring Twitter, the speculation could help investors see significant increase on values of the news giant stocks. Alphabet Inc’s Google and Facebook Inc. have already bid earlier for Twitter’s take over as reported.
Twitter stocks float at 28.12 times forward earnings, which records to be under its peer median 36.06, as per Thomson Reuters data.