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Twitter shares down amid dropped takeover bid reports

Published 10/10/2016

The social media company is reportedly considering a takeover deal amid growing shareholder criticism over earnings momentum
The social media company is reportedly considering a takeover deal amid growing shareholder criticism over earnings momentum

Twitter shares hit two-month lows on Monday following reports that tech giants including Google have abandoned plans for a potential takeover bid.

Shares fell by as much as 14.5% to 16.97 US dollars per share following a report by Bloomberg which claimed that potential suitors - including Google, Walt Disney and Salesforce - had lost interest in the social media site, and were now unlikely to make a bid.

Citing sources, Bloomberg also reported that Twitter had cancelled a board meeting with external advisers to discuss a potential sale on Friday.

The social media company is reportedly considering a takeover deal amid growing shareholder criticism over earnings momentum, amid sluggish user and advertising growth.

Poor performance even prompted co-founder Jack Dorsey to return to the helm as chief executive back in 2015.

Mr Dorsey has since guided the company towards video and live streaming partnerships in an effort to breathe life into the company.

Still, the company reported its weakest revenue growth since its stock market flotation in 2013 back in July, with second quarter revenue rising 20% to 602 million US dollars (£460 million).

It managed to add three million new users, which only accounted for a 1% jump from the first quarter.

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