Twitter Inc (NYSE:TWTR) has announced that it would be reviewing buyout bids, from interested parties, later this week, as per a recent report from the Wall Street Journal. As per details of the report, there are three major contenders for the buyout, which include Google, Salesforce and Disney. Amongst these three, Salesforce seems to be the one most interested in the sale, with its CEO, Marc Benioff, claiming that Twitter was an “unpolished jewel”. He voiced his opinion that the firm could serve as a platform for advertising, data and e-commerce. In an earlier interview, Mr. Benioff had announced that he was analyzing data-rich companies and how they can work with the Salesforce business model.
It should be noted here that Twitter is currently valued at $16 billion. However, analysts point out that none of the three leading bidders has little in common with the other, which indicates just how diverse the platform is. Moreover, some analysts have even pointed out that merger of gigantic tech companies does not usually fare well, for either. This is evident in Microsoft’s purchase of Nokia and Hewlett-Packard’s acquisition of 3Com. Such analysts advise that the three tech giants should consider focusing on smaller yet fledgling concerns.
Another report from Bloomberg claims that Google has even hired a financial advisor, Lazard Ltd, to assist it with the potential acquisition. It should be noted here that the hiring of the advisor can purely be consider and evaluate the business and does not mean that Google will definitely make a bid. The spokesperson for Lazard and Google are both being tight lipped about their engagement. Google has previously had deals with Twitter, but only few have yielded results. Twitter’s main problem is its stagnant user growth. It has been anticipated that Google plans to use Twitter to rival its ads competitor, Facebook, after an earlier attempt to do so through Google+ fell apart.
Similarly, Twitter is also said to have acquired the services of Goldman Sachs Group Inc and Allen & Co, to review the potential offers. Chris Sacca, a longtime investor of the company, has voiced his views that the company should be acquired. Mr. Sacca and several other major investors of Twitter have been reducing their holdings in the stock, as of late.
