Microblogging giant Twitter Inc might be looking at being acquired following an effort of more than one year to increase the growth of users that has come up short.
Salesforce.com is now considering a bid to acquire the social media business say people who are familiar with the situation. The exploration is currently in its early stage, said one person and a deal might not be reached.
Shares of Twitter increased 21% on Friday after a report was released that a possible sale was being discussed. Prior to Friday, shares had dropped by 30% over the last 12 months and the company’s market value was sitting at $13 billion. At its highest in December of 2013, the market value was $40.6 billion.
Salesforce CEO Mark Benioff loves to make acquisitions and his company has showed an interest in challenging its competitors in the business software industry by gobbling up startups in areas such as artificial intelligence and e-commerce.
The discussion about a possible acquisition of Twitter shifts the thought to what financial and strategic value the company could bring to a number of different giants in Silicon Valley.
Twitter will soon reach three years since it launched its IPO when its shares jumped 73% as its investors called the company a star in social media that rivaled Facebook and Google for advertising dollars.
Twitter became a household name through building a strong communications tool, which gives ordinary citizens a voice along with celebrities.
However, since the IPO debut, a number of upheavals in management, delays in products and unclear business strategies have complicated the effort of Twitter to capture the mobile users of the world and get them to spend their money.
In 2016, Twitter brought co-founder Jack Dorsey back as CEO after certain investors has lost their confidence in Dick Costolo’s ability to create growth. Dorsey’s return had been hailed by some investors and employees, who believed Twitter was in need of having its founder right the ship.
However, even Dorsey, who splits time between Twitter and Square, the payments company, as CEO of both, has become stressed over the difficulty of making Twitter better amidst a number of negative reports in the press, said people close to the CEO.
The size of Twitter’s audience remains big for many companies that are interested in growing their offerings in social media, especially as people have been spending much more time on smartphones and tablets.