Rumors Of News Corp Buying Twitter Inc. Are Put To An End
The rumors that started on Wednesday of News Corporation buying the social media giant Twitter Incorporation are finally put an end as News Cor denies such an interest to be false.
Rumors were reported on Wednesday that News Corp was interested to buy the microblogging company, Twitter Inc., however, it was put to an end when Rupert Murdoch’s company denied that it had no interest in buying the business out, or of buying any stake of the company. This rumor actually turned out to aid in rising share price of the micro blogging organization by 14% to and more standing at $17.55 in the afternoon.
The rumor was given more fire of News Corp’s interest in buying out Twitter Inc. when CNBC made the reports. This rumor was predicted to be true or believed by many mainly because of the social media platform’s falling stock price, the tie up was denied by spokesman for News Corp later.
The social media network CEO and co-founder, Jack Dorsey was given back the position last year, and after he was rehired, huge efforts being made were witnessed to help the company’s sluggish user growth and making the platform as entertaining as possible. An announcement was made by the company back in December of conducting tests for advertisements and even monetizing inactive users. Some desperate measure were being witnessed by the business to compete efficiently with it major rival in the industry of social networks.
The social media network has many major investors such as former CEO of Microsoft, Steve Ballmer and Saudi Prince Alwaleed bin Talal. This is not the first time the business is surrounded by news of a takeover, another report was made of a takeover worth $31 billion. It has received bids from Facebook Inc. and Alphabet Inc.
The social media advertising company’s stock were reported to fall by 41% since Jack Dorsey was made the CEO again back in October. The organizations stock has been suffering for a while now, mainly because of the slow user growth which the CEO is trying to recover and is failing so far. Analysts said that the decline in the business share price attracted investors to buy them. According to reports 69 million shares of the company were exchanged on Wednesday when the rumor broke out. It has 300 million active users according to its third quarter earnings report, and the slow growth makes many in the market expect the selling out of the company entirely.
No indication and hints have been given by the social media giant of it being open for sale, but only the fact that it is making efforts to grow the business. By launching new feature such as the ‘buy now’ button and ‘moments’.
Twitter stock closed at $17.39, going green by 4.19% on January 21.