Updated from 4:24 p.m. to include additional information on eBay.
SAN FRANCISCO (TheStreet) – Digital River (DRIV) plunged by more than 20% after it gave Microsoft (MSFT) more time to consider whether to continue using its Web site hosting and development service. Twitter (TWTR) , meanwhile, fell sharply after representatives from the L2 research firm projected the social media will see year over year declines, while eBay (EBAY) jumped after an analyst upgrade.
Digital River fell 22.7% to close at $19.71, after the company disclosed it had given Microsoft an additional 18 days to decide whether it wants to continue its distribution agreement with the Minnetonka, Minn., company. Microsoft now has until Dec. 19 to make its decision, rather than its previous Dec. 1 deadline.
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Under the agreement, Digital River develops, hosts and manages Microsoft's online store that sells both software and hardware.
One thing investors may want to keep in mind that as the year comes to a close, customers will often play hardball with vendors in order to extract the best deal possible leading into the New Year. Vendors, meanwhile, want to record as many sales as possible before the financial books close at the end of the year. Digital River has had a Microsoft Operations Digital Distribution Agreement with the Redmond giant since Sept. 1, 2006.