I joined CNBC’s Oriel Morrison last night to chat about the rumors that Google (GOOGL) might be making a move on Twitter (TWTR):
Insider Monkey had a good write-up of the interview:
Google is the only potential suitor of Twitter if ever there is acquisition talks going on between the social network and any other large technology firm, Charles Sizemore says in an interview with CNBC…
“If there is any sort of potential deal in the works, it’s probably Google [that is interested in Twitter] just by process of elimination. There is really not that many big tech companies out there that would have the cash or the ability to buy a company of Twitter’s size. Twitter is a $34 billion market cap company. There’s just not that many companies [with that much cash on hand],” Sizemore said…
Meanwhile, other potential suitors are not really suited for Twitter the way Google is, Sizemore continued.
For example, Apple Inc. (AAPL) which has about three times Google’s cash, is a consumer electronics company. Microsoft Corporation (MSFT) which is said to have about $30 billion more cash on hand than Google, he said, is more of a business services company. Facebook Inc (FB) is a rival and wouldn’t want to touch Twitter if only for antitrust reasons, Sizemore said.
“So that really leaves Google by process of elimination. There is just nobody else big enough or with a big enough cash hoard that would be able to make a serious run at it,” he said.
Nonetheless, Sizemore cautioned people that this is nothing more but a rumor at the moment.
You can read the full write-up here.
Charles Sizemore is the principal of Sizemore Capital Management. As of this writing, he was long AAPL.