Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Why Jon Steinberg Thinks Google Inc (GOOGL)’s Takeover Of Twitter Inc (TWTR) Cannot Just Happen?

Twitter Inc (NYSE:TWTR) stock rallied on Tuesday by around 3% following a series of events like takeover rumors, AlphaOne Capital’s Niles decision to long Twitter Inc (NYSE:TWTR) stock and new feature introduction by Twitter Inc. But the news which caught many people eyes was the takeover talks. Some rumors suggest that two companies including Google Inc (NASDAQ:GOOGL) are showing interest to takeover Twitter Inc (NYSE:TWTR). Daily Mail North America CEO, Jon Steinberg talked to CNBC’s Jon Fortt and Carl Quintanilla about the takeover rumors and iterated on the possibility of such a deal happening.

Google, is GOOGL a good stock to buy, NASDAQ:GOOGL, NYSE:TWTR, Charles Sizemore,

Quintanilla reported that some reports suggest Google Inc (NASDAQ:GOOGL) as one of the two companies that has approached Twitter Inc (NYSE:TWTR) with some serious interest in taking over the proceedings at the company. He added that the rumors suggest Twitter Inc has hired Goldman Sachs Group Inc (NYSE:GS) to advise them on the takeover matters.

Google Inc (NASDAQ:GOOGL) is a company which relied heavily on organic growth and has built up their own business rather than depending heavily on the M&A’s. But Google has not done particularly well in the social media sector. Some also suggest that Google Inc (NASDAQ:GOOGL) could have done this takeover much earlier when Twitter Inc stock was at its lowest. Twitter Inc stock went up by more than 45% in this year. If Google had made this takeover approach earlier they would have settled with a much cheaper deal. But why now when the valuation of Twitter has gone much higher? Also Google has to face the regulatory approval in case the deal has to go through successfully.  Steinberg said that he is not foreseeing this deal happening and he pointed at his reasons for the opinion.

“Regulatory approval; Absolutely. Remember, Google kind of stepped back from Groupon rumors, because they didn’t think they can get that approval right now. I don’t see this happening, because $34 billion market cap for Twitter, a $370 billion market cap for Google and a stock deal be a bif 10% – 20% depending on what the premium is going to be. Google doesn’t do stuff like or hasn’t done stuff like that unlike Facebook. They will have a $100 billion in cash by 2016 according to a WSJ. So conceivably they can do it in cash. But I don’t just see it. The government would never allow. Google is under so much scrutiny right now,” Steinberg said.

Steinberg said that the government is all over Google for privacy, antitrust violations, etc and he feels that government would never allow Google for such a deal.

Disclosure: None

I just made 84% in 4 daysI Just Made 84% in 4 Days By Blindly Following This Hedge Fund

I just made 84% in 4 days by blindly imitating a hedge fund’s stock pick. I will tell you how I pulled such a huge return in such a short time but let me first explain in this FREE REPORT why following hedge funds’ stock picks is one of the smartest things you can do as an investor. We launched our quarterly newsletter 2.5 years ago and not one subscriber has, since, said “I lost money by EXACTLY following your stock picks”. The reason is simple. You can beat index funds by creating a DREAM TEAM of hedge fund managers and investing in only their best ideas. I just made 84% in 4 days by blindly imitating one of these best ideas. CLICK HERE NOW for all the details.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!