- Daily Zen
Who will buy Twitter? Twitter is perhaps one of the most influential sources of instantaneous information and free speech. However, as a public trade stock, it has been a failure. The steep decline in share price makes it look like an exciting acquisition target.
Twitter is allegedly in talks with several companies that are concerned in buying the social media site. The agony of the San Francisco-based social media company has been an ongoing soap opera since long. So long that it has gotten giant companies attention in spite of its comparatively small size and tech influence.
Professional networking site LinkedIn was in a parallel circumstance when Microsoft declared its invasion in June 2016.
A microblogging site with around 300 million users and revenues of $2 billion yearly. However, it is losing around $125 million every quarter. Nonetheless, some report that these losses are principally due to stock-based recompense. By now, Twitter has an amassed deficit of $2 billion. In addition to, it has $3 billion in cash and short-term securities on hand.
Among the suitors quoting unidentified sources, are Google’s parent company Alphabet and Salesforce. Other businesses supposed to be concerned in buying Twitter include Verizon, AT&T, Chernin Group, IBM, Microsoft and more.
However, none of these corporations have confirmed the rumors.
Twitter can be a good totaling to Amazon’s e-commerce offerings. In addition, Amazon wants more apps to enhance its online sales and supplement its huge potential for service offerings. Nonetheless, there’s a counter-argument to this. Amazon may not prefer buying a social tool that seems to have no similarity professionally.
The search-engine giant appears to be everyone’s favorite acquirer. This is probably because it has failed to get anywhere with its own social platform – Google+. Furthermore, it can be fascinated in the data it can acquire from Twitter. It unquestionably has the resources and the interest. However the fact that it already has a deal with Twitter for access to its data firehose can diminish interest.
Twitter will total up Microsoft’s Skype and LinkedIn franchise by getting a live stream of information on its plate. Furthermore, Microsoft can exploit Twitter tech into future Windows products. This can prove a great way to counter Google and attract more mobile users, which is an established segment of Twitter.
Salesforce lost its bids for LinkedIn and NetSuite. Hence this can be a good chance for it to get more aggressive in the streaming info market. In addition, Twitter can be an expansion of all the services Salesforce already offers. It can further charge a monthly fee for a premium product and market it to its extensive installed base.
There are some other corporations who may also reap benefits if they buy Twitter. Nevertheless, there holds no surety of them pulling it off given the high valuation Twitter acquisition. In many ways, Twitter is caught in a value trap. It elevated so much money that it now vital for the company to go public at a high valuation. However, the genuine business value of the network has never met such supercilious expectations and maybe never will.