Google would be perfect match for Twitter sale - analysts

By

Sharecast News | 05 Oct, 2016

Updated : 15:55

Salesforce.com and Walt Disney are among the companies who are rumoured to be eyeing a bid for struggling social network Twitter, but Google is the perfect suitor for the company according to analysts at Cantor Fitzgerald & Co.

Shares in Twitter have been boosted 20% by the speculation surrounding its sale, after heading below $20 per share for the majority of this year, following disappointing figures related to user growth.

Led by Youssef Squali, the team of analysts have referred to the possible merger as "synergistic" for Google's parent company Alphabet.

The analysts cite various reasons why Google would be the best suited company to acquire Twitter.

The huge increase in data it would gain from the 300m users would allow Google to synchronise and make more relevant the content it advertises, and consequently allow for higher ad prices.

Twitter has lost out recently to competitors Facebook and Snapchat on various battlegrounds, one of which is the use of its messaging functions.

"We believe that owning Twitter and expanding its messaging service would make Google more competitive longer term," Squali writes.

The acquisition would also allow greater synergy between Youtube and Twitter, a key proposition as tech companies focus on video in the current climate.

Twitter has yet to receive a formal bid, but the company's board is said to be weighing up its options following its performance in recent months.

Last news