Potential buyer of Twitter has a lot of job to do


The Deutsche Bank seems to have saved Twitter from the trials it has been going through with its German bank trials that has taken the center stage for some days.

The popular social network has become the target of many doomsayers who find it interesting to bug them at each opportunity they find. Even with the little rise their stock registered yesterday, they are still under some form of attack.

If management of Twitter are good at taking advice, then this little time that the attention was taken away from them should be a time they value very much. In few weeks to come, the 10 years old social network platform will become a beehive for businesses that are interested in bidding for its acquisition.

Twitter’s shares witnessed a rise after Google and Salesforce indicated interest which was intensified by Disney’s interest in acquiring Twitter. Other bidders that are not as strong as the aforementioned are Verizon and Microsoft, but in all, Twitter’s share rose by 25pc just some days ago which is quite impressive.


There is a desire that shareholders have which is for someone that can come in and save the social network. They have been series of claims of companies interested in acquiring it like the ne witnessed last year that claimed that Google has paid in $31 billion to the company and this made the share of Twitter to rise up by 8pc.

The shareholders may not be wrong in their decision to sell. The social network since its inception has lost not less than $2bn since inception and has a habit of putting itself in more debts. The $107m it lost in the 2nd quarter of this year was more than what was witnessed in the last two quarters which went from 48pc – 36pc -20pc. By the time it announces its result for the 3rd quarter sometime this month, it is expected to fall by nothing less than 6pc.

This is not just the case. The number of people that seems to favour the social network seems to always be on the decrease with a little above 300 million for more than a year. This is pathetic figure when you compare it with that of Facebook’s figure that stands at 1.7bn and increasing. Well, it may not be nice to compare it with Facebook, but the social network has also paled in comparison with others like Snapchat, Instagram, and WhatsApp.

Some issues have been blamed for this and they include Twitter’s unclear rules of engagement, the network intricacies experienced, the need to put in many hours before you can achieve any meaningful thing with it.  However, whatever be the case, the company seems to be sinking without hope of rising. Even with the co-founder of Twitter, Jack Dorsey trying to showcase the social network as the best for real-time video and information, it has failed to come through as such.

The two things that may be still be keeping the social and lending support to its $16.5bn are the prospect that some buyer that is rich will buy it and the Facebook radiation that it is enjoying.  The former seems to be the only hope the social network has.

From what we have observed about the bidders, many of them do not seem capable enough. A company like Disney that is more interested in showcasing more of its videos, buying Twitter may not be in its best interest.