Why Twitter's Near-Term Stock Price Will Decide Acquisition Fate

The rumors of Twitter Inc (NYSE: TWTR) getting acquired by Google Inc (NASDAQ: GOOGL)(NASDAQ: GOOG) have existed ever since Twitter was a private and much smaller company.

The past few years have seen Twitter become not only listed, but growing into a $34 billion company. Due to this success, the same rumor has resurfaced many times. This time, however, they have gained momentum as people close to Google have disclosed that the company is in talks to buy Twitter.

CNBC contributor Herb Greenberg was recently seen discussing the probability of Google's acquisition of Twitter.

Google Doesn't Need Twitter

"When we talked about it originally, it was when Twitter was private," Greenberg said. "That's when people thought the deal should have happened. Look, Google doesn't 'need' Twitter.

Related Link: Why Twitter Could Charge Google $65 Billion In M&A Deal

"What Twitter needs – and what I have said all along is – it needs to be part of something else so it can go about its business and continue to create what it's creating now, which is a heck of a good service."

Sustainability

He continued, "Now I say that with an asterisk because Twitter itself, in terms of desiring whether it needs to be acquired, will probably look over the next, I think, the next one or two or three quarters to see what kind of sustainability it has – because, if the stock [...] take a big hit here, it becomes vulnerable again."

He explained, "If you look at the developments they have recently with Periscope, with this new re-tweeting mechanism they have – which I think is spectacular – they are showing they can start to do things and move the needle. And now we just have to see if they are sustainable," Greenberg concluded.

 
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