Twitter Acquires Podcast Operator Breaker; Street Sees 13% Downside

Twitter has bought social podcast operator Breaker for an undisclosed sum, Breaker’s CEO Erik Berlin announced on Monday via a blog posted on the company’s website.

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According to Berlin’s blog post his team will be joining Twitter (TWTR) to help “create new experiences” for the social media giant’s users. As a result of the deal, he announced that the company’s social podcasting app will be shut down on Jan. 15.

“We’re truly passionate about audio communication and we’re inspired by the ways Twitter is facilitating public conversations for people around the world,” Berlin commented. “We’re impressed by the entrepreneurial spirit at Twitter and enthusiastic about the new experiences that the team is creating.” (See TWTR stock analysis on TipRanks)

Breaker’s Chief Technology Officer Leah Culver posted in a tweet that she will be joining Twitter to work on the social media giant’s new audio-based networking project, Twitter Spaces.

On Dec. 18, Merrill Lynch analyst Justin Post reiterated his Buy rating and a price target of $58 (6.4% upside potential) on the stock. Post has named Twitter as one of his two top online media recovery plays for 2021 alongside Alphabet Inc and sees upside ahead.

Meanwhile, the stock has an analyst consensus of a Hold based on 18 Holds, 7 Buys, and 1 Sell. The average price target of $47.50 implies downside potential of about 12.9% to current levels. Shares have gained by about 73% over the past year.