TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentral TechCentral
    NEWSLETTER
    • News

      Where to next for Dimension Data

      5 July 2022

      Zapper is said to seek fundraising at huge valuation

      5 July 2022

      Stage-5 load shedding to continue until Thursday

      5 July 2022

      Big step forward for Cell C as debt deal approved

      5 July 2022

      Eskom unions accept 7% wage offer

      5 July 2022
    • World

      Bitcoin hints at a bottom – but it may be different this time

      5 July 2022

      China, US war of words erupts over lunar missions

      5 July 2022

      Tether fails to calm jittery nerves

      4 July 2022

      EU to impose wide-ranging new rules on the crypto industry

      3 July 2022

      Crypto hedge fund Three Arrows files for bankruptcy

      3 July 2022
    • In-depth

      The bonfire of the NFTs

      5 July 2022

      The NFT party is over

      30 June 2022

      The great crypto crash: the fallout, and what happens next

      22 June 2022

      Goodbye, Internet Explorer – you really won’t be missed

      19 June 2022

      Oracle’s database dominance threatened by rise of cloud-first rivals

      13 June 2022
    • Podcasts

      How your organisation can triage its information security risk

      22 June 2022

      Everything PC S01E06 – ‘Apple Silicon’

      15 June 2022

      The youth might just save us

      15 June 2022

      Everything PC S01E05 – ‘Nvidia: The Green Goblin’

      8 June 2022

      Everything PC S01E04 – ‘The story of Intel – part 2’

      1 June 2022
    • Opinion

      South Africa can no longer rely on Eskom alone

      4 July 2022

      Has South Africa’s advertising industry lost its way?

      21 June 2022

      Rob Lith: What Icasa’s spectrum auction means for SA companies

      13 June 2022

      A proposed solution to crypto’s stablecoin problem

      19 May 2022

      From spectrum to roads, why fixing SA’s problems is an uphill battle

      19 April 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»In-depth»No one wants to buy Twitter

    No one wants to buy Twitter

    In-depth By Agency Staff9 October 2016
    Facebook Twitter LinkedIn WhatsApp Telegram Email
    Jack Dorsey
    Jack Dorsey

    Twitter, struggling to find new users, will need to rely more heavily on its live video streaming strategy after top potential bidders were said to have lost interest in making offers amid pressure from their investors.

    Twitter once saw interest from Google, Salesforce.com and Walt Disney, all of which consulted with banks on whether to acquire the social media company.

    Now all of those suitors are unlikely to make a bid, according to people familiar with the matter. On Friday, Twitter had planned to have a board meeting with outside advisers on a sale but cancelled, one of the people said.

    The company’s search for buyers began after several quarters in which sales and user growth slowed. Twitter received interest from one potential acquirer, which led the board to hire Goldman Sachs Group and Allen & Co to pursue a sale in September. CEO Jack Dorsey opposed a sale, while co-founder and board member Ev Williams, supported a deal.

    Twitter has considered other solutions, such as divestitures of assets not central to its business, people familiar with the matter have said.

    If a buyer doesn’t appear, Twitter will to try to appeal to more users through a new strategy that emphasises live video. The company has been entering partnerships for sports, politics and entertainment content — such as the National Football League’s Thursday night games — that it can stream alongside tweets related to the video. It may give people without Twitter accounts a new way to use the service, while allowing the company to share revenue on the video ads.

    The fledgling effort hasn’t yet significantly boosted users or advertisers on the platform known for its 140-character messages. The service, favoured by journalists, celebrities and politicians, also has been weighed down by growing concern about harassment and abuse on the site.

    twitter-640

    “The lack of growth in users and engagement underscore that Jack’s initiatives thus far haven’t really been effective,” said Robert Peck, an analyst at SunTrust Robinson Humphrey. “If this whole ‘live’ idea doesn’t work, then what is it that gets Twitter to grow?”

    The San Francisco-based company’s stock declined by 35% in the past 12 months, and had dipped to US$18,25 in late August — below the $26 price from its November 2013 initial public offering — before rallying after Williams said the board had a duty to consider options including a sale.

    Salesforce investor reaction

    At Salesforce’s investor conference this past week, several investors talked to chief financial officer Mark Hawkins and other executives about how they weren’t pleased with the idea of a Twitter buyout, according to another person familiar with the matter. They made their feelings known during small huddles near the stage and other areas around the meeting room. High-profile investors also e-mailed Hawkins, who forwarded the messages to his CEO and the board.

    Chi Hea Cho, spokeswoman for Salesforce, said the company doesn’t comment on rumours. Representatives for Twitter, Google and Disney declined to comment. All of the suitors, especially Salesforce, have seen their share prices decline since reports of their plans first surfaced.

    Buying Twitter would come with a series of complications. Beside the growth issue, and the concern about harassment among users, a buyer would have to address heavy employee stock grants,while dealing with a workforce that has already faced a lot of turnover in its leadership.

    “From a consumer standpoint, it’s a little like a promise that remains unfulfilled — users are trying to inject some meaning into an experience that remains rather undefined at this point,” Markus Giesler, associate professor of marketing at York University’s Schulich School of Business in Toronto, told the CBC.  — (c) 2016 Bloomberg LP

    Ev Williams Google Jack Dorsey Salesforce Salesforce.com Twitter Walt Disney
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleRadio is mine, Hlaudi tells SABC staffers
    Next Article ICT white paper under fire

    Related Posts

    The bonfire of the NFTs

    5 July 2022

    The Equiano cable has landed

    4 July 2022

    Google’s Equiano cable lands in Namibia

    3 July 2022
    Add A Comment

    Comments are closed.

    Promoted

    Hot Ink certifies and diversifies to maintain competitive printing edge

    5 July 2022

    Increased flexibility with Dell Precision Mobile Workstations

    5 July 2022

    The 5 secrets of customer experience in the cloud era

    5 July 2022
    Opinion

    South Africa can no longer rely on Eskom alone

    4 July 2022

    Has South Africa’s advertising industry lost its way?

    21 June 2022

    Rob Lith: What Icasa’s spectrum auction means for SA companies

    13 June 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.