Twitter Inc is moving closer to a sale, according to a CNBC report, sending the microblogger's shares up more than 17 per cent in premarket trading.
Twitter Inc is moving closer to a sale, says a CNBC report. The news has sent the microblogger’s shares up more than 19 per cent. This is the biggest gain in over two years. CNBC, which cited unnamed sources, said that possible suitors include Alphabet’s Google and Salesforce.com. Twitter has been a prime acquisition target for quite some time now and if a deal indeed comes through, it may prove to be a big boon for Twitter. Google’s name with reference to Twitter’s acquisition has been doing the rounds for quite some time now. Twitter, Salesforce and Alphabet could not be reached immediately for comment, reported Reuters. Salesforce shares fell more than 3 per cent, while Alphabet dipped around 0.25 per cent.
Acquisition rumours are not new to Twitter. Just last month, there was buzz that former Microsoft chief executive Steve Ballmer is looking to buy the micro- blogging site company. Incidentally, last year Ballmer had announced buying around 4% stake in Twitter. In June this year, when the $26.2 billion Microsoft-LinkedIn deal came through, all eyes were on Twitter as the next be acquisition target in the tech world.
Even as Twitter struggles for ways to boost user growth and win over advertisers, other social media services such as Instagram and Snapchat are expanding their footprint. Co-founder Jack Dorsey returned to the company as chief executive a year ago. However, his plan to revive Twitter is at best seen as unfinished. For the second quarter of the US financial year, Twitter missed market estimates. In fact, Twitter reported its slowest revenue growth since going public in 2013. The revenue forecast for the ongoing quarter did not cheer analysts either. Twitter said that it expects revenue to be in the range of $590 million to $610 million.
Twitter’s user base increased about 1 per cent to 313 million average monthly active users in the second quarter from 310 million in the first quarter. Earlier this year, Twitter laid out a long-term strategy to turn around its business, focusing on five areas: its core service, live-streaming video, the site’s “creators and influencers,” safety and developers.
(With inputs from Reuters)