Twitter For Sale – Will Twitter Be Up For Sale?
Twitter For Sale
Twitter for sale. It’s big news in the world of social media.
Imagine you had something great up for sale and no one was interested in it? Twitter is facing the possibility of doing just this with recent rumors that the social networking platform would be of interest to some of the most well-known companies. The fact that Twitter has set a short window of time for the sale to be finalized. They released a statement saying that they wanted to have all negotiations complete for the sale by October 27th.
Who is interested to buy Twitter
The problem is that there are not companies lining up to purchase the social media platform. Apple, Disney and Alphabet who owns Google considered the possibility of purchasing Twitter but they do not seem to have any serious interest in entering into negotiations. The one company that is interested in Salesforce, a cloud based company specializing in sales related software.
When Wall Street found out that only one company was seriously interested in purchasing Twitter, the stock price for the social media platform lost 20% of its value and closed at right under $20.00. No one at Alphabet, Apple or Disney wanted to discuss why they were not interested in purchasing Twitter. Both Salesforce and Twitter also refused to make a statement.
Will Twitter Wise To Sell Salesforce?
If Twitter were purchased by Salesforce, it would likely be used differently. Reuters has suggested that the social networking platform would be used for customer service purposes or to collect data for businesses. James Cakmak who is an experienced analyst says he does not think that Twitter would be wise to sell to Salesforce. He points out that Salesforce does not have the money available to buy the social media platform and that their shareholders may not be happy if Salesforce went $20 billion in debt to do so.
He said that Salesforce would be able to use the social media platform together with the cloud they use for marketing data to charge more for their software and to provide more data and better quality data for their clients. That said, he is not convinced that they could really best utilize what Twitter has to offer and maintain the customer base that Twitter already has.
If no one else bids on Twitter except Salesforce, they may just decide to take themselves off the market until they are able to ask for the price that they really want. Another analyst from SunTrust says that he does not believe Salesforce is a viable bidder and that companies like IBM, Verizon, AT&T, Micorsoft, Oracle and Comcast are better suited. However these companies have not yet commented on the possibility of bidding on Twitter. Some experts believe that Twitter may be headed toward selling although they think CEO of the social media platform would prefer to try to make Twitter profitable again using new methods and strategies.
Twitter has become a cheaper company to buy
There has been talk of Twitter selling their company for close to a year due in part to no increase in users three quarters in a row. Representatives from Twitter spoke about how it has been difficult to gain advertising money. All the issues that Twitter is having lately has decreased their value which makes them a cheaper company to buy. Some investors are starting to sell shares as they see the downward spiral that Twitter has been on recently. Their value is estimated to be around $10 billion, which is a record low.
Chris Sacca, who has invested a lot of money in the social network platform has sold some of his shares and is hoping someone buys Twitter soon. He admits that he is disappointed in his investment and that he is trying to balance his portfolio by getting rid of what he sees as a possibly losing investment. One year ago, Sacca was very vocal about putting Jack Dorsey back in the CEO role. Just this week, this happened.
Wall Street reports Twitters stock closed at a little under $25.00 with a market cap of $17.3 billion. Sacca said he can’t imagine anyone spending more than that for the Twitter stock. He also said he does not think that Twitter’s outlook will improve unless they bring in new people with new ideas. Sacca said owning so much Twitter stock has been very stressful during the last decade.
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