Twitter set to receive bids from many corporate giants: reports

Dhaka,  Monday,   2016-09-23
Published : 23 Sep 2016, 22:34:03

Twitter set to receive bids from many corporate giants: reports

Twitter set to receive bids from many corporate giants: reports
Twitter could soon receive formal bids from several technology giants looking to buy the embattled social network, according to reports.

Multiple potential buyers attracted by the company's data have expressed an interest in the social media company, according to CNBC, including Google and Salesforce.

Salesforce.com, which is a $48.7 billion US-listed tech giant that makes software for businesses, is reported to be considering a takeover, according to reports in the Wall Street Journal, with discussions at an "early stage", reports The Telegraph.

Vala Afshar, who is 'chief digital evangelist' at Salesforce, appeared to confirm the reports in a tweet on Twitter.

But a later Tweet seemed to suggest his views were personal.

In response to the news Twitter's shares were up 21 per cent as early morning trading began, the greatest rise in two years, to a market cap of $15.7 billion.

Twitter has been struggling to reverse a stall in growth. It revealed its second quarter of losses in July amounting to $106 million.

The decade-old social media platform's board of directors is reportedly open to a deal. While a sale is not imminent, a deal could close by the end of the year, a source told CNBC.

Directors at the company apparently floated the idea of a sale at a board meeting earlier this month. At the time reports named technology giants Google, Apple, and Rupert Murdoch's 21st Century Fox or News Corp as potential bidders.

In a bid to bolster its finances, Twitter has also been looking at cost-cutting measures and new features on its site, such as relaxing the famous 140-character limit.

The loss-making business could be worth around $18 billion, using the multiple in Microsoft's recent takeover of LinkedIn.  

While the news sent Twitter's share price to its highest since January at $22.65, Salesforce was down 3.2 per cent and Alphabet dipped 0.19 per cent. - IH

 
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