Rupert Murdochs News Corp said rumors about the companys interest in buying microblogging site Twitter or building a stake in it were untrue.
Twitters shares, which rose as much as 14%, pared some gains and were up 5.2% at $17.55 in late afternoon trading. The rumors had lifted the stock from a record low.
Unconfirmed chatter about potential News Corp interest in Twitter circulated on Wednesday, with the rumors intensifying after a CNBC segment, tech website Re/code said.
The social media site was evaluated as a takeover target because of the companys shrinking stock price, Re/code said.
Related: Stock rout demotes Twitter CEO Jack Dorsey from billionaire to millionaire
A spokesman for News Corp said there was no truth to the rumors.
Twitter has been the subject of takeover rumors in the past, including a fake report attributed to Bloomberg News that claimed the company had received an offer to be acquired for $31bn.
According to reports, Twitter has in the past received a bid from Google, now part of holding company Alphabet.
Twitter trades at 28.12 times forward earnings, below its peer median of 36.06. Facebook has a PE of 33.08, while LinkedIn Corps is 52.64, according to Thomson Reuters data.
Up to Tuesdays close, the stock had fallen nearly 41% since co-founder Jack Dorsey was named permanent CEO in October.