rtmark
LearnBonds.com

Google’s Parent, Alphabet Inc. Might Snatch Up Twitter Inc. (TWTR)

Twitter Inc (TWTR)

Twitter Inc is expected to fall into irrelevancy soon enough. However, falling online platforms, even those soaring to success, have a knack for being snatched up by other firms. Much like Microsoft’s expensive interest in LinkedIn, Google’s parent entity — Alphabet Inc — has been pegged as the most likely company to pay way too much for Twitter.

Twitter Inc

But Wall Street seems fed up with the recent trend of overpriced buyouts. As a word of caution, analysts advise that Alphabet should pay no more than $1.1 billion for Twitter Inc.

Experts fed up with corporate wasting

The company that gave us the Windows operating system now wants to adopt LinkedIn. It is a professional social network and a bit like a career-orientated Facebook. The rounded $20 billion offer it will get from Microsoft is about $153 per share more that its real value though. Naturally, experts have been quite upset about whole deal.

There is a ballpark value for just about every asset and it is upsetting when an entity pays far too much for one. Worse still, from a business view, is when that purchase fails to pull in a profit. Microsoft’s adoption of Nokia’s smartphone is perhaps a perfect exampleof this. The software giant spent billions on the venture yet couldn’t manage to turn around the handset unit’s course to failure. Could Twitter be Alphabet’s equivalent of Nokia.

Twitter has a slightly long way ahead of itself before it can be recognized as the social media site it once was. That being said, it is in fact making steady progress towards a recovery. The micro-blogging site is up 17 percent since Microsoft made news of its $20 interest in LinkedIn.

Would Twitter be worth it?

A friendly word of caution has been extended by analysts. According to Forbes, “Even in the most optimistic scenario for future cash flows, Alphabet should pay no more than $1.1 billion, or $1.55/share, for Twitter, which is 91% below the current price”

It’s hard to figure out what Twitter could offer Alphabet. Despite more than $2 billion in revenue growth over the last 4 years, the site’s year to-date has been mostly negative with -$812 million in economic earnings. Bearing this, the platform stands as a bit of a fixer upper. Alphabet Inc should consider the likely return it is to derive from Twitter. Again, Forbes speaks of synergy, suggesting that the two firms have to build on each other instead of stagnating. This should be reflected in the revenues.

“The combination with Alphabet would have to, rather drastically, improve the core profitability of the business and more.”

On the other hand, Alphabet Inc’s Google Plus platform is due for major boost. It is thought that Twitter could offer Google Plus the raise in popularity it needs.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

Rating

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar

Adam Green is an experienced writer and fintech enthusiast. He he worked with LearnBonds.com since 2019 and covers a range of areas including: personal finance, savings, bonds and taxes.