According to reports, the Walt Disney Co. (NYSE:DIS) is currently evaluating a potential bid to purchase Twitter. But there is likely to be other bidders as well, including the US cloud computing business Salesforce, Google, Verizon, and Microsoft. Salesforce.com is reportedly working with Bank of America for the bid.
Twitter (NYSE:TWTR) has started talks with many technology companies, as the business grapples with low revenue growth ever since the company went public in 2013. There are 313 million users active on Twitter on an average every month, but the user growth has not been as consistent as Facebook, which now has 1.71 billion users. Twitter’s user base has grown by a mere 1 percent in the last quarter.
Disney or Twitter has not come out with a statement on the sale.
The company has failed to post a net profit in the last 11 quarters. Its accumulated loss stands at a staggering $2.3 billion since the company’s inception. Twitter has also missed the expectations of Wall Street in both the 1st and 2nd quarters of this financial year. In fact, there has been speculation for a while now that Twitter might be up for sale. It seems things are hotting up now.
Twitter is currently valued at $16 billion. The business is seeking an investment of $30 billion to include live video streaming on the site. That seems to be the future. Twitter has already streamed the US Presidential debate between the candidates live on the platform. Analysts have been saying for long that the company needs to find a new way of making money. It’s one-to-many messaging service isn’t making them money. The platform has remained restricted to journalists, politicians, and celebrities.
However, finding a buyer at $30 billion might be difficult as Twitter is not profitable.
Twitter’s (NYSE:TWTR) stock went up by 21 percent on Friday in anticipation of a sale. On Monday too, the stock went up by another 3.22 percent to reach $23.37. The stock is likely to see more upswings in the coming days.
The stock was on offer at $26 when the company went public in November 2013. There was a brief upward swing after this when it reached a high of $74, but it has been a steady downhill ride since then. A few analysts are predicting that the Walt Disney Co. (NYSE:DIS) or another company might eventually buy Twitter for $22 a share.