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Tuesday 18 October 2016

Salesforce away from acquiring Twitter, for now

Salesforce away from acquiring Twitter, for now

Twitter is another blow just before the weekend when the last of her potential suitors, Salesforce.com, has distanced himself from a short-term acquisition. The news follows reports last month that Twitter had been approached by a number of high-level high-tech companies to discuss a possible takeover. Salesforce news of the rejection came directly from the horse's mouth, the head of Mark Benioff direction.

Salesforce: Twitter discussion with a sort of deal

Benioff's comments come after a series of other potential suitors who have publicly rejected any buying Twitter. Microsoft, not really considered a strong contender anyway, was the first to announce that he had no interest in buying the company. This rejection was quickly reflected by the parent company Google Alphabet, and also one of the most curious potential buyers, Walt Disney, who both said they are not interested.

But Benioff's statement is more revealing because it suggests that Salesforce had spoken to Twitter on some kind of deal. Indeed, Benioff had already hinted at a possible interest in the ailing company social media, calling it a "rough gem" and the statement seems to confirm this interest.

Delaying tactics?

Then again, it could just be that the suitors of Twitter are fishing for a better price, said one analyst. Holger Mueller, senior analyst and vice president of Constellation Research, said there is a simple explanation why everyone turns his back on Twitter, the company is a price too high right now, and would probably be forced to reduce his asking price if no bites. One reason, Mueller thinks Twitter will get cheaper its user base steadily declining, which was accepted for the first time by the CEO Jack Dorsey in February. But all those who play the waiting game could also take a risk. Perhaps the situation would become clearer October 27 when Twitter will announce its third quarter results. The company was a bit of a damp squib in the financial markets since the public back in 2013, failing to offer much evidence that can support growth and attract new users.


Twitter posted its lowest growth again in the second quarter, sales increased 20 percent to $ 602 million, but below the projected 606.8 million dollars in sales analysts.

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