Twitter Buyout Odds Are At The 'Greatest' Right Now

Twitter Inc TWTR is once again rumored to be open to a sale. This time, Google Inc GOOG and Facebook Inc FB are the rumored buyers. The unconfirmed details come from Fox Business Network's Charlie Gasparino, who tweeted about the situation on Tuesday afternoon:

as shares fall, banking sources say $TWTR is open for a sale to $GOOGL or $FB we discuss 310pm @FoxBusiness @LizClaman

— Charles Gasparino (@CGasparino) June 16, 2015

i kinda hope $TWTR doesnt sell to $GOOGL or $FB anytime soon gonna be fun watching this train wreck play out

— Charles Gasparino (@CGasparino) June 16, 2015

thinking from wall street bankers: the lack succession plan @jack as interim ceo & a banker like @anthonynoto as CFO all points to sale

— Charles Gasparino (@CGasparino) June 16, 2015

Shares of Twitter spiked higher on Tuesday, recently at $34.78, up 0.35 percent on the day after trading mostly in the red. Twitter expert Sean Udall quickly weighed in on the matter. "I don't know [Gasparino] personally," Udall, who serves as the CIO of Quantum Trading Strategies and is the author of The TechStrat Report, told Benzinga. "He's obviously a guy who likes to make headlines. However, he did some of the absolute best reporting during the financial crisis on potential takeover deals. He nailed a bunch of them. I think historically he's been a very good M&A reporter. He seems to be a guy who's very well connected and would have a lot of good sources." That said, Udall isn't sure any news has been reported yet. He said that Gasparino's report isn't that different from what Twitter's outgoing CEO, Dick Costolo, told investors. "He all but said he was open to a deal," said Udall. "If all they're saying is [that] Twitter is open to a deal, that's not new news. The new news would be, have they been approached about a deal? That would be new news. The news that, hey, will they willingly accept or be open to it? They've said they would on other occasions."

I personally would love for Google to buy twitter but trading based on people spreading rumors can be disastrous. Usually is.... $GOOG $TWTR

— J.C. Parets (@allstarcharts) June 16, 2015

Fox's Charlie Gasparino is saying that $TWTR is open to sale to $FB or $GOOG. I have no idea whether accurate.

— Douglas Kass (@DougKass) June 16, 2015

Udall said that in many cases interim CEOs are never actually replaced because they were brought in to secure an M&A deal. "The window of opportunity to buy Twitter right now is the greatest for this quarter and the next quarter," he added. Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.