Early this month, reports swirled that Twitter‘s board was weighing ways to cut costs, ramp up revenue or possibly maximise shareholder value by selling itself, Agence France-Presse reported.
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Shares of Twitter jumped more than 20 percent Friday amid multiple reports the company was approaching potential buyers, with the Wall Street Journal claiming cloud computing company Salesforce was considering a deal.
“Twitter has received expressions of interest from a number of technology companies that are considering whether to make a bid for the social media company”, reported Faber on air, citing multiple unnamed parties “close to the situation”.
Lately, the market has been speculating an acquisition of Twitter, with Alphabet looked upon as a potential suitor.
A formal bid could be submitted soon, though CNBC notes that a Twitter sale is still a ways away. Still, the telecom company is clearly on a drive to own Internet companies, and Twitter certainly fits the bill. They were trading up 18 per cent at US$21.99 at 9.38am in NY, well below the November 2013 IPO price of US$26 a share.
Google and Salesforce appear to be the two major suitors, interested in Twitter for the data it generates as a media company.
None of the companies involved has released any official statements regarding the matter; however, Vala Afshar, Chief Digital Evangelist for Salesforce, did tweet about it. The company still has around 350 million active users, and things aren’t looking really great for the social network. Twitter’s stocks had fallen approximately 30 percent in the past year before Friday morning.
Twitter, over the course of this year, has made several changes to its platform to make it better for its users. Telecom giant Verizon and software giant Microsoft may also be interested, according to TechCrunch.
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In June 2016, Microsoft agreed to buy social networking site LinkedIn for $26.2 billion, in a deal which increased speculation around the future of Twitter.
