News Corp, in a statement, has denied rumours about the company's interest in buying micro blogging site Twitter Inc.
Reports also stated that the company has no plans to build a stake in it any time soon.
Twitter's shares, which rose as much as 14 per cent on Wednesday, pared some gains and closed up 4.1 per cent at $17.38.
The stock rose from a record low after unconfirmed chatter about News Corp's interest in Twitter circulated on Wednesday.
The social media site was evaluated as a takeover target because of the company's shrinking stock price.
"Twitter inside a larger organization definitely makes theoretical sense, whether it is another internet company or a media company," Monness, Crespi, Hardt, and Co Inc analyst James Cakmak said.
Twitter already has several high-profile investors. Former Microsoft Corp CEO Steve Ballmer reported a 4 per cent stake in October, making him the third-biggest shareholder after Twitter co-founder Evan Williams and Saudi billionaire Prince Alwaleed bin Talal.
Up to the close on January 19, the stock had fallen nearly 41 per cent since Dorsey was named permanent CEO in October.