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Tech

Twitter shares plunge as Snapchat IPO talk heats up

Opening sequence

Opening sequence

Tech

Twitter shares plunge as Snapchat IPO talk heats up

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COMING UP:Twitter shares plunge as Snapchat IPO talk heats up

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Transcript

00:00:01
>> A tale of two tech companies Thursday, one on the way up, the other desperate for a lifeline. The it social media brand of the moment, Snapchat, or Snap Inc., as it now prefers to be called, prepping for an IPO. Dow Jones reporting Snapchat could go public as early as March, reportedly valued at $25 billion, making it the biggest company to do so since Ali Baba in 2014.
00:00:26
But what goes up all too often comes crashing down, as Twitter knows all too well. Twitter shares plunging 20% Thursday as chatter about a possible acquisition cools off and possible bidders seem to scatter. The most likely bidder now, Mark Benioff's cloud computing company Salesforce. But he's been coy at best, Reuters correspondent, Leona Baker.
00:00:49
>> This week, Dreamforce has been going on in San Francisco. That's Salesforce's big event, and Benioff spoke a lot this week about Twitter. He says he respects Jack Dorsey, the CEO of Twitter, wishes him the best. He said the company struggled, he's offered no sign of whether they're there and how much they'll bid.
00:01:09
It's a bit unclear, he's really dodged the questions so far.>> Wednesday, the text site Recode reported that other possible buyers including AlphaBits, Google, Disney, and even Apple are unlikely to enter bids. With Thursday's drop, Twitter is now valued at just shy of $14 billion, far less than its IPO 3 years ago, when just as Snapchat is today, it was valued at 25 billion.