Twitter building

Following the news that Microsoft was buying the social media network, LinkedIn, the shares prices of Twitter have jumped. This comes as investors are reconsidering the previous rumors that the parent company of Google, Alphabet is probably going to move in for Twitter now. Shares of the company were up by at least 6 percent.

Many of the tech people believed back then that Google had looked at Twitter, and they had decided not to buy it because it did not fit well in their vision. One analyst from The Information, Amir Efrati famously quoted that, “Larry doesn’t give a f*%k about Twitter, which was believed to be Larry Page’s behavior towards Twitter.

But that seems to have changed. Now investors are convinced that the move by Microsoft to purchase LinkedIn has paved the way for Google to purchase Twitter. The Microsoft deal sees LinkedIn shareholders get 49 percent premium on their stock. And for Twitter, the stock has been on a downward trajectory ever since Jack Dorsey, the co-founder of Twitter, took back the reins. It seems at the moment, rumors that Google might buy Twitter are powerful enough to increase the stock price than Dorsey’s leadership have done so far.

So with that in mind, which companies are being rumored to be in line to buy Twitter.

  1. Google – the leading player in the move for Twitter if anything is going to happen. Peter Garnry also believes that Google is one of the only big companies powerful enough to buy Twitter. Irrespective of the stagnant Twitter user metrics, the cash flow position for the company has been improving recently.
  2. Comcast – another powerful and big enough company to purchase Twitter would be Comcast. People at Twitter believe that the best option for the company would probably be someone who has deep pockets coming in for them. Comcast suits that bill perfectly.
  3. NewsCorp – rumors once spread that NewsCorp was coming in hard on the microblogging site, and they were denied.

Twitter has also been in a deal with Google lately. The deal makes sure that Google prioritizes Twitter’s tweets in the search results. Twitter advertisers can also use the Google DoubleClick Bid Manager and the DoubleClick Campaign Manager so as to buy campaigns on Twitter. The deal effectively comes into effect in the third quarter and when it does it will help both companies to identify shoppers whether they are on mobile or desktop computers.

If the venture does go well for Twitter and Google, then both companies can expect more ad revenue, and also it means more user data. If that’s the case, the stagnant growth of Twitter’s user base will not be an issue anymore. The site also has advantages, in that it still in front of Facebook in the instant news section.

The move would surely be beneficial for both parties.

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