×

Twitter spikes as rumor reignites buyout speculation

Shares of Twitter jumped more than 7 percent Wednesday amid a rumor that two billionaire investors are shopping to buy the social media platform.

Traders cited renewed speculation of Twitter is a takeover target as reason for Wednesday's move.

Robert Peck, internet equity analyst at SunTrust Robinson Humphrey, told CNBC's Scott Wapner he doubts Twitter's board of directors would be willing to sell the company. Peck said the board is "100 percent behind CEO Jack Dorsey and his turnaround plans".

Peck also said Dorsey himself might not be willing to sell now or anytime soon. A deal in 2017 "wouldn't surprise" Peck, but he said now is too soon to give up on the turnaround plan.

Eventually, Peck told CNBC's "Squawk on the Street" earlier in July, logical acquirers include large media or data companies such as Google, Facebook, or Apple.

"Twitter will eventually be an acquisition candidate, but it's not likely in 2016," Peck said.

Twitter did not immediately respond to requests for comment.