Google (NASDAQ:GOOGL), which is now called Alphabet Inc., is said to be working with Lazard Ltd. for a possible bid for Twitter. Lazard, based out of San Francisco, is a financial advisory firm. They are going to help Google make the bid.
Lazard Ltd. will be helping Google evaluate their options and make the purchase bid. There were reports that Twitter was asking for $30 billion, but that might be difficult to achieve as the company is currently valued at $16 billion. Lazard has previously worked with Google in the $625 million purchase of Apigee, a firm that develops software.
Twitter in the meantime has also hired Allen & Co. and Goldman Sachs to find potential buyers after learning that Salesforce.com was interested in buying them out.
Both Google and Lazard have declined to comment.
There has been speculation for a while now that Twitter might be up for sale. The company has not been doing financially. The 313 million user base has not gone up substantially. Twitter’s performance was below the expectation of Wall Street, even in the first two quarters of this year. Their stock has been going down consistently since the company went public in late 2013. However, it has gone up by about 10 percent in the last one week since the news of a potential sale.
Many Bidders for Twitter
The company has fallen behind Facebook in reach and remains limited to journalists, politicians, and celebrities. However, there is still interest in Twitter. It was learned that Microsoft, Verizon, Salesforce, and the Walt Disney Co. (NYSE:DIS) are all interested in picking up Twitter. So Google’s work is clearly cut out. It’s not going to be easy.
Till now, there was only speculation that Google might make the pitch for Twitter (NYSE:TWTR). However, with this news, it is now almost confirmed that they are going to make the bid for the social media business.
Google’s Social Media Efforts Haven’t Worked
Google (NASDAQ:GOOGL) is interested in the business because of the treasure trove of data they have. And Microsoft, like Yahoo, has been trying to stall Google’s growth for many years now. The company’s Google+ social media initiative haven’t really worked out. It has always lagged behind their rival Facebook. And in fact, Facebook has also been eating up Google’s revenue with its own paid advertisements in recent years.
Google partners Twitter already, showing tweets in their search results pages.