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Twitter stock plunges 10% after hours on report that Google won't make a bid

Oct 6, 2016, 05:27 IST

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Twitter stock plunged 10% in after hours trading on a report that Google would not pursue a formal bid for the social network.

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Sources cited by Recode's Kara Swisher and Kurt Wagner say Google does not currently plan to make a bid and was not moving forward with any effort to do so. Apple making an acqusition offer was also "unlikely," according to Recode.

Twitter has reportedly told potential acquirers that it wants to conclude selling negotiations by its third quarter earnings report on Oct. 27. Google was one of the top names on the potential acquirer list, along with Salesforce and Disney.

Twitter stock rose early on Wednesday on a WSJ report that Salesforce's CEO Marc Benioff considered the company to be an "unpolished jewel." It closed up 5.74% for the day, but has since nose-dived on the reports that Google would be out of the running. Google stock remained flat on the news.

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Despite the talk of the acquision, Twitter CEO Jack Dorsey has remained steadfast in his desire to keep it an independent company.

According to people familiar with the matter who spoke with Bloomberg's Sarah Frier, Dorsey was opposed to selling Twitter as recently as September 8, when Twitter held a board meeting to discuss the company's future.

According to the piece, there isn't a consensus within the company as to what should happen in the coming weeks and months. Dorsey wants Twitter to "remain on its current course and work to capitalize on recent product improvements and success in streaming live video," according to Bloomberg.

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