According to some reports, Google and Salesforce are some of the companies interested in buying Twitter Inc. that has had issues lately. As Recode’s unnamed sources claimed Twitter will be sold for at least $30 billion.
Anthony diClemente, an analyst at financial services company Nomura, told Wall Street Journal:”I think [a Twitter acquisition] would be a way for a media or technology company to have immediate access to a sizable platform. That’s a big means of distribution of media and undefined social content and in some ways, the strategic value of Twitter is in the eyes of the beholder.”
We don’t know yet whether the sale will happen or not considering that the company hasn’t received a formal acquisition bid. Google, Twitter, and Salesforce haven’t yet made comments or any announcements about this, but Vala Afshar, the chief digital evangelist of Salesforce, wrote on Twitter that he loves that media.
Jack Dorsey, the Twitter co-founder, returned to the company in 2015, as a chief executive, in order to try to get Twitter back on course and beat the rivals like Snapchat and Facebook. Twitter has a market capitalization of $16 billion, but they cope with the problem of how to attract more users.
Just for comparison, Facebook has 1.7 billion monthly active users to 313 million who use Twitter. Moreover, Snapchat also beats twitter with 150 million users daily whereas Twitter has 10 million fewer.
The company has lost $3.2 billion in the last decade. For example, Twitter’s revenue in the second quarter this year increased 20% to $602 million and that has been the smallest income ever.
USA Today spoke to Scott Kessler, an equity analyst at S&P Global Market Intelligence, who said:”We think such an acquisition could make sense. However, we could see some company leaders and shareholders perhaps wanting a price/valuation seen by would-be suitors as unrealistic.”
Although there is a growth, the big picture doesn’t look good for Twitter. The company shares rose over 21% after the reports have been released. It remains to be seen what is going to happen.