This Week in Technology: Tesla, Microsoft, Twitter, and More

Although Salesforce, Disney, and Alphabet have ruled out a bid for the social media company for the time being, Twitter Inc (NYSE:TWTR)’s stock nevertheless surged by 7% on Friday on the back of rumors that SoftBank Group could make a bid. While nothing public supports the veracity of the rumors, Softbank, along with Saudi Arabia and others, is planning to form a fund of as much as $100 billion to invest in the global tech sector over the next half decade. With that massive capital bankroll, a potential purchase of Twitter wouldn’t be a problem financially speaking. Whether it makes much sense for shareholders is another question. A total of 30 funds from our database had a bullish position in Twitter Inc (NYSE:TWTR) at the end of the second quarter, up by three funds from the previous quarter.

While we are on the topic of M&A in the technology sector, AT&T Inc. (NYSE:T) has agreed in principle to buy Time Warner Inc (NYSE:TWX) for $85 billion according to CNBC’s sources. That would translate to about $110 in cash and stock for each Time Warner share, which would be a nice premium to the stock’s Friday close. Although the purchase of Time Warner will diversify AT&T and help unlock synergies/deliver value in the long run, AT&T might have to take on additional debt, which might in turn pressure its credit rating in the near term. According to our records, 63 funds amassed around 5.6% of Time Warner Inc (NYSE:TWX)’s float on June 30. By contrast, 55 investors owned 1.3% of AT&T Inc. (NYSE:T).

Disclosure: None