Twitter said to be looking to sell
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Twitter, the global microblogging service that pioneered hashtags and the art of marketing in small, crisp sentences is reportedly looking for suitors.
The sale around the region of $16 billion, although no accurate sales figures have been released and it greatly depends on the performance of Twitter’s stocks.
Reportedly, Twitter is working with Goldman Sachs and Allen & Co for the potential sale.
According to Reuters news sources, the company is not short of suitors. The list includes Alphabet (Google parent), Microsoft, Salesforce.com and Walt Disney, Twitter CEO Jack Dorsey is a board member.
Facebook, for the moment, seem to be glaringly absent.
No assurance of an actual sale has been given as of time of reporting.
A similar rumor reared its head around the same time last year, although evidence points to more concrete reports this time.
The biggest problem for Twitter is in its ability to be clear about its mission: whether it is a technology company or a media player.
It also has not found a way to monetize its over 300 million subscriber base. In comparison, Facebook and LinkedIn have fared better.
Twitter’s foray into becoming a major media player has not fared any better. Its prominence in the Rio Olympics did not increase engagement and a streaming deal with NFL is way lower than live TV. These misses have analysts saying that the Twitter stock being overvalued.
Questions & Answers
Q.What is the estimated value of the potential sale?
What is the estimated value of the potential sale?
The sale is reportedly around £16 billion, but accurate figures haven't been released. The final amount depends significantly on Twitter's stock performance. There is no guarantee a sale will actually happen at this stage.
Q.Which companies are reportedly interested in acquiring Twitter?
Which companies are reportedly interested in acquiring Twitter?
Potential suitors reportedly include Alphabet, Microsoft, Salesforce.com, and Walt Disney. Facebook, however, is not currently mentioned as being interested. Goldman Sachs and Allen & Co are assisting with the potential sale.
Q.What are the main challenges Twitter faces according to the article?
What are the main challenges Twitter faces according to the article?
Twitter struggles to define its mission, unsure if it's a technology company or a media player. It has also not successfully monetised its 300 million subscriber base, and its media ventures like the Rio Olympics and NFL streaming deals have underperformed.
Q.Why do analysts believe Twitter's stock might be overvalued?
Why do analysts believe Twitter's stock might be overvalued?
Analysts suggest the stock is overvalued due to Twitter's failure to monetise its large subscriber base and its underwhelming performance in recent media initiatives, such as its engagement during the Rio Olympics and its NFL streaming deal.