Twitter a popular name in social media like the Facebook is up for sale it is reported. The negotiations are on in a big way. This is the talk in the business circles and business channels. Financial issues are said to be the manin reason behind this sale proposal from the Twitter.
Twitter Inc. has initiated talks with several technology companies to explore selling itself, a person familiar with the matter said , as the social media company grapples with its slowest revenue growth since going public in 2013.
Twitter has struggled to translate its high public profile into the kind of user growth that has propelled Facebook, which now boasts 1.71 billion customers. The company has also suffered from management turmoil since its earliest days.
A business channel reported earlier on Friday, citing anonymous sources, that Twitter is in talks with companies that include Alphabet’s Google and Salesforce.com, and may receive a formal bid soon.
Twitter and Alphabet could not be reached immediately for comment. Salesforce declined to comment.
Twitter shares jumped more than 20 per cent to $22.46 per share on Friday on the report of sales talks, marking the largest one-day rise since their first day of trading in 2013.
Twitter, which now has a market value of nearly $16 billion, has been a near-constant focus of takeover speculation amid persistently disappointing sales and user engagement.
Morningstar analyst Ali Mogharabi said Alphabet would be the best acquirer for Twitter since it has not yet been able to crack social media on its own despite several efforts.
“From a strategic standpoint, we think from it would be more beneficial for Alphabet as opposed to Salesforce,” Mogharabi said.Morningstar estimates Twitter could be bought for $22 per share.
As rivals such as Facebook’s Instagram and Snapchat gain traction with advertisers and social media users, investors have questioned how long Twitter could persist as a stand-alone company.