Twitter shares are down about 13% in late-morning trading following a weekend Bloomberg report that its leading potential bidders — including Salesforce.com — have backed away.
The social media company reportedly cancelled a board meeting to consider offers. Disney, Google and Apple — the other companies seen as possible bidders — dropped out of the picture by late last week.
But CNBC’s David Faber says that some other, unnamed, companies remain interested.
Salesforce investors feared that it might bite off more than it could chew. Its shares are up 5.6% so far today.
Twitter’s now down about 27% since October 5, when it told potential buyers to submit bids by the end of this month. It’s also down more than 44% from its trading price a year ago.
Investors fear that Twitter’s symbols and protocols make it unappealing to non-users, which will limit its ability to grow. Twitter’s Q2 results disappointed Wall Street, especially as the company acknowledged that it saw “less overall advertiser demand than expected.”
CEO Jack Dorsey probably will talk up Twitter’s potential to become an important video platform, especially following the kickoff last month of its deal with the NFL to stream 10 Thursday Night Football games.
“Video is now the No. 1 ad format in terms of revenue on Twitter,” COO Adam Bain told analysts in July. “It’s interesting, because just a year ago, those set of products did not exist.”
He’s looking for ad dollars that have “moved off of TV and money that’s coming in from traditional display” ads.
Twitter got an unexpected endorsement from GOP presidential candidate Donald Trump in last night’s town hall debate with Hillary Clinton.
“Tweeting happens to be a modern day form of communication,” Trump said. “I mean, you can like it or not like it. I have, between Facebook and Twitter, I have almost 25 million people. It’s a very effective way of communication. So you can put it down, but it is a very effective form of communication. I’m not unproud of it, to be honest with you.”