Twitter is getting pretty serious about the sale with reports flowing in that the company has told the potential acquirers that it wants to seal the deal by the end of the month.
SalesForce.com, Alphabet, Walt Disney and Microsoft are said to be in the race to acquire Twitter and reports indicate that Twitter has already finalised a list of buyers with which it is going to hold the final discussions and from whom it will receive the binding bids in the matter of couple of weeks. Twitter’s intentions of closing the deal before end of October indicate that the company wants to ensure that by the time the third quarter results are declared, it has a buyer on hand who will be taking the company forward and shareholders are completely aware about the direction in which the company will be heading.
While Alphabet has been pegged as a contender in the Twitter race, a report from Recode yesterday indicated that it wasn’t going to go ahead with the binding bid. Considering how quickly Twitter wants to conclude the deal, chances are that a sale may not materialise. None of the companies have officially commented anything on the sale and everything is hush hush.
If Salesforce.com buys Twitter, the microblogging platform could eventually become a business intelligence platform for its customers. Google could turn the whole thing into a more social affair while Disney could turn Twitter into a sports and entertainment platform.
Twitter has had an initial successful run, but revenues haven’t been growing as expected despite having some 313 million average monthly active users and a growing presence as a source of news. The company missed Wall Street’s sales expectations in both the first and second quarters of 2016, according to Thomson Reuters StarMine, and has yet to produce a net profit in 11 quarters as a public company.
Instagram, Facebook, Snapchat and others have effectively been eating into Twitter’s share. Soon after Twitter was listed, prices of its shares bounced from $26 a share to $74; however, from there the prices have always been declining.