Twitter Bid Said To Be On the Cards as Twitter Shares Soar

• September 23, 2016
• By Pete Nisbet
• 0

Another Twitter bid has been predicted. Twitter shares jumped close to 20% after rumors that it had received a takeover bid. This has happened before, but the rumors were just that – rumors that came to nothing. However, this time, it seems that a successful bid for the company might not be too far away.  Twitter’s board is agreeable to a deal. This may come sooner than later. Possibly this year.

Twitter Bid Ideal for Google Portfolio

Potential bidders include Salesforce.com and Google.  Twitter would suit Google’s portfolio of social media which includes YouTube and Google+.  Which is the most popular depends on whose analysis you read. However, Facebook is generally #1 while YouTube and Twitter are in the top 4. Google+ is usually in the top 10. Twitter would be an ideal acquisition for Google.

Salesforce.com is a cloud computing company dealing primarily in management, offering sales, customer, and marketing systems. However – it also capitalizes on commercial uses of social networking by means of acquisition. Google may be better for Twitter than Salesforce.

Twitter Share Hike Might Deter Bidders

It is too early to comment on who is the most likely suitor, although Salesforce shares dropped over 3% while Google’s owner, Alphabet, dropped just 0.25%. This has happened too often to create too much excitement, although this time it may be the real deal. Google and Salesforce are viable bidders, although too big a hike in Twitter’s share price may put any bid on the back burner.

Twitter has lately appeared to be losing popularity, and the company recently posted its worst revenue growth report since 2013 when it went public. Its outlook was not particularly good either. Twitter’s major competition comes from Facebook, Instagram and Snapchat.  Each of these is currently doing better than Twitter.

Will a Twitter Bid be Snapped Up?

It cannot be long before Twitter decides it cannot continue alone. Google may be an ideal buyer. Even the return of Jack Dorsey who co-founded the company has had no visible effect. Twitter’s stock often increases with rumors of takeovers, but none of them has ever resulted in a proper bid.

If a genuine Twitter bid is made, it is highly likely to be snapped up by the board. Perhaps a 20% hike in Twitter’s stock is too much. Maybe that is why there has been no genuine bid in the past? Time will tell, although Twitter seems ripe for takeover right now – and seemingly willing!