Chris Lau
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Chris Lau in Value Stocks,

Bids are Coming for Twitter

Despite reports by Bloomberg from unknown sources that Twitter (TWTR) received zero bids, chances are good the company will get bids by October 27. Twitter set its earnings date as a deadline for the potential buyers. Google must, at the very least, consider Twitter’s strategic value. The search engine giant derives nearly all of its revenue from basic ads. As Facebook (FB) takes more of Google’s users through its walled social network, Google need to figure out how Twitter will help win back users.

Just 7 hours after Reuters reported bidders were losing interested, it reported Salesforce.com (CRM) is still mulling a bid despite shareholder resistance.

Expect the market news “dump” pulling Twitter to the $17 - $18 range. Any breach below that, to $16, would set a bid price in the low $20’s for TWTR stock. If Twitter manages to hold the high teens, CRM or GOOGL would need to bid at least the mid to high $20’s for the micro-blogging site.