Will Twitter be snapped up by a larger corporation later this month? Rumors regarding a takeover of the popular, but struggling social media giant have been circulating for the best part of the year.
Following two consecutive quarters of stagnant user growth, Twitter is reportedly set to evaluate formal acquisition bids on October 27 in an effort to ease its investors’ concerns over its shrinking stock price. That same date will also mark the release of the company’s third quarter earnings, revealing whether its big gambits on live video and changes to its core tweetingexperience have paid off.
Despite reports of initial interest from Google, Salesforce, and Disney, recent speculation has dashed almost all hope of any of those companies putting forward a bid. Meanwhile, internal rumblings suggest that Twitter itself could be divided on the issue of a takeover. Twitter has thus far refused to comment on what it terms “rumor and speculation.”
As the all-important date draws ever nearer, we’ve compiled the essential roundup of all the major news around the tech acquisition that has everyone talking.
Will Salesforce persist despite investor pressure?
Salesforce, which is still sore about losing out to Microsoft in its bid to scoop up LinkedIn, is the only name left on the table from the aforementioned (likely) suitors.
Despite the most recent reports claiming the company is facing increasing pressure from shareholders not to go ahead with plans to bid on the social media giant, Salesforce has still not made up its mind, according to Reuters.
The nosedive Twitter’s shares have taken (losing as much as a third of their value) since news broke that both Google and Disney weren’t interested in pursuing an offer, may benefit Salesforce’s cause. The software company, which commands an 18.4-percent share of the customer relationship management (CRM) market, has cash reserves around half of Twitter’s current market capitalization (notes TechCrunch). By most accounts, Salesforce simply cannot afford the social platform. However, the latest news is the company is considering whether to place a lowball offer for Twitter based on recent trends.
Salesforce CEO Marc Benioff has emphasized Twitter’s strengths in CRM and, like most tech entrepreneurs, probably wants to get his hands on the company’s treasure trove of data – the platform generates 500 million tweets a day and attracts, on average, more than 500 million users each month.