Twitter's share price just shot up on rumours Google and Salesforce are planning to buy it

Emma Haslett
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Social Media Site Twitter Debuts On The New York Stock Exchange
The company is regarded as a perfect takeover target (Source: Getty)

Twitter shares whooshed higher on the opening bell in New York after internet rumours suggested two of the world's largest tech companies might make formal bids for it.

CNBC reported that Salesforce and Google may make a formal bid shortly, causing shares to jump 20.6 per cent to $22.38 in late morning trading in New York.

Reuters later quoted a source, saving the company has initiated talks with "several technology companies"

Why Twitter, why now?

Twitter has been regarded as an increasingly attractive takeover target in recent months: its share price has fallen as it struggled to engage users. While figures in July showed revenues had come in at $602m in its second quarter, up 20 per cent on the year before, it missed analyst expectations of $606m.

Meanwhile, it lowered third-quarter guidance to between $590m and $610m - down from the $678m analysts had expected.

Turning around the supertanker

At the beginning of this month, shares tumbled after reports suggested chief executive Jack Dorsey - who is also the chief executive of NYSE-listed Square - was under pressure from its board to cut costs.

It's frequently the subject of takeover rumours - in August, it was reported former Microsoft boss Steve Ballmer and Saudi investor Prince Al-Waleed Bin-Talal were considering making an offer. Although shares jumped then, investors weren't as enthusiastic as they are today: shares rose a comparatively modest eight per cent.

Salesforce said it doesn't comment on rumour or speculation.

Neither Google nor Twitter had responded to requests for comment at the time of publication.