Twitter has performed incredibly well on the stock market for the
past couple of weeks. But the honeymoon is over as it’s back to reality
and correction time. Twitter shares are currently down 20.06 percent to
$19.88 compared to yesterday’s 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 don’t want to buy Twitter anymore.
Salesforce seems to be the last remaining suitor. The company already tried to buy LinkedIn, but Microsoft ended up acquiring the professional social network.
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.