News Corp, in a statement, has denied rumors about the company’s interest in buying micro blogging site Twitter Inc. Reports also stated that the company has no plans to build a stake in it any time soon. Twitter’s shares, which rose as much as 14 percent on Wednesday, pared some gains and closed up 4.1 percent at $17.38. Also Read - Explained: Can Twitter get banned in India?
The stock rose from a record low after unconfirmed chatter about News Corp’s interest in Twitter circulated on Wednesday. The social media site was evaluated as a takeover target because of the company’s shrinking stock price. Also Read - Twitter vs government: Twitter India loses legal protection for not complying with IT rules on time
“Twitter inside a larger organization definitely makes theoretical sense, whether it is another internet company or a media company,” Monness, Crespi, Hardt, and Co Inc analyst James Cakmak said. Also Read - Twitter friends/followers seeking your unwanted attention could be Unmentioned
Twitter already has several high-profile investors. Former Microsoft Corp CEO Steve Ballmer reported a 4 percent stake in October, making him the third-biggest shareholder after Twitter co-founder Evan Williams and Saudi billionaire Prince Alwaleed bin Talal.
Up to Tuesday’s close, the stock had fallen nearly 41 percent since Dorsey was named permanent CEO in October.