Steve Balmer and a Saudi Prince Want to Buy Twitter?

twitter-twtr-logoZacks: Shares of social media company Twitter Inc. (TWTR – Analyst Report) shot higher Wednesday after rumors of the company possibly being acquired were reignited. TWTR hit as high as $18.75 a share, a jump of over 8.5% from its open.

The latest rumor has Microsoft (MSFT – Analyst Report) CEO and now NBA franchise owner Steve Balmer teaming up with Saudi Investor Prince Al-walweed Bin-Talal to buy out the company. Just this past fall Balmer purchased a 4% stake in TWTR.

Internet equity analyst Robert Peck of Suntrust Robinson Humphrey said however he doubts a deal for Twitter would occur in the near future. “Twitter will eventually be an acquisition candidate, but it’s not likely in 2016” he said in an interview.

The reasoning behind his doubts is that the company’s board of directors is for now fully behind company CEO Jack Dorsey’s plans for a turnaround. He also added that Dorsey himself would also be unlikely willing to sell.

Last week, Twitter released its second quarter earnings report that showed a beat on the Zacks Consensus Estimate for EPS, but revenues came up short. The company also reported that it added 3 million monthly active users in the quarter, bringing its total to 313 million, but has struggled in terms of growth compared to its rivals such as Facebook (FB – Analyst Report) and Snapchat that continue to produce strong growth figures.

Twitter is currently a Zacks Rank #3 (Hold), and shares of the company had taken a hit of 29% year-to-date as of Tuesday’s close.

This article is brought to you courtesy of Zacks Research.

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