The indications that Twitter is on the brink of selling is getting stronger as CNBC and others are reporting that Google, Microsoft, Salesforce and even Verizon are already bidding.
The disclosure that it was up for sale shock its market cap that was standing at $13.3 billion to shoot up to almost 22%.
We also hear that Microsoft is taking the price up so that Salesforce will fall out of the race for the popular social network since it was clear to all that Salesforce appears to be the most suitable.
Salesforce as at the moment can only afford part of the money needed to acquire the company, and will have to find money from elsewhere to finish the deal. This will be its biggest acquisition yet having already spent not less than $4 billion on acquisition alone in the last six months. It tried going in for LinkedIn, but Google beat them to that at a whopping $26.2 billion.
There are some issues that make Salesforce interest in acquiring Twitter because while Twitter is all about consumers and the products they offer, Salesforce. on the other hand, is interested in conquering cloud computing enterprise services.
But looking further into it, Salesforce could use it to expand its various businesses that it has interest in. an example is its Einstein platform for big data intended for real-time data.
In the tech companies today, data is a big deal and churns in big currency and is the wheel that many businesses need to progress. Salesforce at the moment does not have what it takes to supply these set of people. Twitter, on the other hand, has what it takes and has budding users of 313 million on monthly basis. However, the company has been stuck on how to add to this number and to turn them into profit for the company.
After looking it through, Google seems a more suitable company to acquire Twitter for various reasons. The first one is the financial aspect of it; Google has what it takes to finance the acquisition, and secondly, the social aspect of it. Google has been working to see how it can delve into such field on its own without success. As it stands, only YouTube is what they lay hold on, it has always wanted something quite conversational like Twitter.
Google will benefit a lot from its acquisition of Twitter should is succeed because it will work on advertising on its mobile and desktop as well. They will have more users who are being taken away by Facebook.
On the part of Verizon, they have always made it an open secret that they are interested in venturing into media platforms to add to its line of business.
It has done well with AOL that it acquired even with Yahoo that is also pursuing. They seem to want to allow Twitter run the way it is doing presently.
One thing is certain; Twitter is willing to sell and must sell. The time it will do is left for all us to see as events unfold.