Twitter’s stock price plummeted more than 18% on Thursday after Google and Disney were reported to not be interested in the platform, while a potential bid from Salesforce could lower the buyer’s stock value by 25%.
Citing sources “familiar with the matter,” Recode claims that Disney has “decided not to move forward” with a bid to buy Twitter.
Recode also claims that Google, who were at the top of the potential bidders list along with Disney and Salesforce, has decided not to bid on the social network, whilst Apple remains an unlikely bidder.
Since Salesforce CEO Marc Benioff expressed his desire to purchase Twitter earlier this week, analysts have declared that a bid by Benioff would wipe out between 20 to 25% of his company’s value, without the possibility of recovery for up to three years after.
“If Salesforce were to buy Twitter, Mizuho analysts said they believe the acquisition would wipe out $12 billion to $17 billion of Salesforce’s combined value with Twitter, or 20% to 25% of the company,” claimed MarketWatch. “The acquisition would hurt Salesforce, Mizuho analysts say, because they believe the company would have to increase cash compensation to make up for high levels of stock-option expense used by Twitter, and would not derive short-term value from the acquisition.”
Twitter’s stock price is currently down more than 18%, with Fortune writing,“Anticipation of an acquisition is about the only thing that has been keeping Twitter’s share price afloat over the past few months.”