Stocks of Snap soared in price on Thursday, going up to $15.35 per stock – a massive 5.86 percent increase despite of scarce news regarding the company.
This was probably due to investors’ response to Disney’s CEO Bob Iger’s comments on Thursday at a Bank of America Merrill Lynch conference.
According to the Disney CEO, the recent merger and acquisition activity would still go on for the company. Investors even see Disney as one of the possible home for Twitter. Seeing as how Snap shares are at its lowest, investors are perhaps hoping the company will also be acquired by Disney.
Companies have expressed interest in Snap. Just last year, Google offered to buy the company at around 30 billion U.S. dollars. At its current value, Snap should be around $12.41 billion in value. Evan Spiegel and Eric Schmidt who are Snap’s CEO and Alphabet’s Executive Chairman respectively are very close but Spiegel has yet to consider Google’s offer.
Facebook also attempted to purchase Snap but was turned down a few years ago.
In August shares for Snap reported its first monthly gain.
Snap went public at $17 a share and hit its highest of more than $27 before shortly plummeting to a low of $11.28.