As Twitter has continued to struggle, talk about a possible buyout of the fading social media giant has circulated. While doubting that a buyout is imminent, SunTrust Robinson Humphrey analyst Robert Peck has nonetheless assessed the pros and cons of Apple making a move for the microblogging site.
In a note quoted from by Barron’s, Peck today expressed his view that the list of potential buyers for Twitter is short given that a likely acquisition price near $18 billion. The analyst acknowledged that the likes of Google, Facebook, AT&T, Bloomberg and Disney have been cited by investors as possible suitors – but what could Apple get out of beating them all to Twitter?
Peck reckons that, with a Twitter purchase, Apple could diversity its current hardware-focused business model and boost its social media presence. Indeed, Apple is thought to be interested in taking a bigger slice of the social media pie. Peck notes that Apple’s relative inexperience in ads and social media could count against a deal, but cites potential given the company’s news and media ambitions.
In any case, Peck has scotched the likelihood of Twitter going under another company’s wing, largely due to the several initiatives that Twitter is launching and SunTrust’s belief that the board backs CEO Jack Dorsey, whose current tenure as the company’s permanent leader has not yet exceeded a year.
