- Salesforce.com Inc., Alphabet Inc., and Walt Disney are reported bidders
- Shareholder blames CEO for Twitter’s struggles
- Twitter has been trailing, yet received a major boost last week at the New York stock market
- Twitter currently values at $16bn
The speculation which has been rampant in recent months that Twitter, which currently values at $16b, had been preparing itself for sale received a significant boost following several reports on its rise at the New York Stock Exchange Market
Inside sources told Reuters that the struggling social media company which currently values at $16bn is looking to close acquisition deals with Salesforce.com Inc., Alphabet Inc., and Walt Disney Co before the end of October.
Meanwhile, ever since Jack Dorsey, CEO, Twitter Inc. was appointed in 2015, Twitter’s user growth has stagnated, and its shares had fallen by almost 50 percent over the past year before the company surged more than 20% on the New York stock exchange last week
The company had proven wildly popular with users and investors, has struggled recently to maintain its early momentum. Twitter introduced more video and live-streaming functions, including deals with Major League Baseball and the National Basketball Association, but the company has made little progress in increasing users and revenue.
Prominent venture capitalist and early Twitter investor Chris Sacca who was once the largest single shareholder in Twitter has been vocal about his hopes and fears for the social network over the past year and a half and he wants Twitter to sell itself, expressing disappointment with Jack Dorsey, CEO, Twitter Inc.
“I don’t own as many as I used to because I’m not an idiot, but I own more than I should because I’m an idiot.” It’s just an incredible story of underachievement of potential that was never realized,” he said on Tuesday. “I’d be excited for someone with some product vision to go in there and take some chances.”
Interestingly, one of the potential and reported bidders to Twitter, Salesforce in an interview with CNBC indicates that plans are in the pipeline.
“We look at everything. You name it; we look at it. It’s in our interest to look at everything. We have to go deep on everything to understand what is possible for our shareholders and what isn’t. But in the scheme of things, if you look back at my track record as a CEO I think you’ll find I consider a lot of things, [but] I actually pass on most things,” Marc Benioff, CEO, Salesforce.
He added “we’re going to pass on most things. And the reality is our decisions have been very, very good for our company. On the vast majority of the deals we do, the stock goes up.”