Why Accepting A Buyout Could Be ‘The Worst Mistake’ Twitter Could Make

On Monday’s PreMarket Prep, Quantum Trading Strategies CIO Sean Udall discussed the seemingly nonstop stream Twitter Inc TWTR 11.54% buyout rumors. According to Udall, Twitter is nowhere near fully valued in the market, and a buyout at a price less than $35 per share may not be in the company’s best interest.

Twitter shares are up 48.1 percent in the past six months on buyout speculation, but Udall believes they still have a long way to go before they accurately reflect Twitter’s true long-term value.

“I’m not so sure Twitter ever really gets bought out, and I’m pretty sure Twitter never gets bought out for a fire-sale price,” Udall told Benzinga.

Udall went on to explain that a reasonable buyout offer for Twitter would be somewhere in the $30 billion range, or $42 per share.

“I can get to $30 billion about four or five different ways, and that’s not even a stretch,” he added.

Udall explained that, while no buyers seem to be willing to step up to the plate on Twitter, a number of companies wouldn’t want…

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