While seen as a valuable tool for disseminating news and providing large coverage of major social events, Twitter has lagged behind Facebook and Snapchat in terms of growth and fan loyalty. Despite Twitter’s popularity among celebrities, politicians, news outlets, and users across a range of ages, the service hasn’t been able to continuously expand its audience or grow revenue in the ways that other social media platforms have. Twitter also owns Periscope, the app that allows users to live stream to Twitter followers via the cameras on their mobile device.
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“Twitter certainly has value if someone runs the company to maximize profitability”, Pachter said.
As rumoured before, Google, who has the resources to buy the company, is a particularly interesting suitor, as buying Twitter would give it a strong foothold to take on Facebook after the relative failure of Google+.
It managed to add three million new users, which only accounted for a 1% jump from the first quarter.
A Twitter spokesperson did not immediatley respond to a request for comment on the rumors of a sale.
Twitter has been a near-constant focus of takeover speculation amid persistently disappointing sales and user engagement. This, despite Twitter co-founder Jack Dorsey returning to the firm as chief executive a year ago with a long-term strategy to turn the business around. Salesforce shares fell more than 3%, while Alphabet dipped around 0.25%.
The board of the company are apparently keen to reach a deal.
Still, the company reported its weakest revenue growth since its stock market flotation in 2013 back in July, with second quarter revenue rising 20% to 602 million USA dollars (£460 million).
Other contenders such as Microsoft and Verizon could also make good use of Twitter’s assets. “Not a simple task, but for Twitter an unavoidable one”.
Some of tech’s most recognizable and powerful brands are looking to buy Twitter, according to reports.
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