The following is an excerpt from James B. Stewart | June 16, 2016 | Nytimes.com |
YouTube and Google.
Instagram and Facebook.
Tumblr and Yahoo.
LinkedIn and Microsoft.
Twitter and … ?
In the relentless push toward consolidation in technology and social media, Twitter, the social networking site that allows users to send and receive short messages, or tweets, has been the perennial bridesmaid. But this week’s megadeal between Microsoft and LinkedIn has renewed speculation on Wall Street that Twitter needs to attract a suitor or risk being overtaken by ever-larger competitors.
“If current trends continue, it’s inevitable that Twitter will get acquired,” Robert Peck, managing director and internet equity analyst at SunTrust Robinson Humphrey, told me this week. Mr. Peck has long considered a Twitter deal likely, and he renewed that prediction last week even before the Microsoft-LinkedIn deal was announced. This week numerous analysts piled on to the notion.
Investors seem to agree: At one point this week, Twitter shares were up 17 percent on deal speculation, pushing the company’s market capitalization to nearly $11.5 billion.
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