The game is changing the other way for Twitter (NYSE:TWTR), and fast. The social media site that went public in November 2013 has not been doing well financially. The company has failed to post a net profit in the last 11 quarters. It missed Wall Street expectations in both the 1st and 2nd quarters of this financial year as well. Twitter’s growth has also been largely stalled, while competitor Facebook has roared on.
Amid all this, it was learned that Twitter was looking for a buyer. Google, Verizon, Salesforce, Microsoft and the Walt Disney Co. (NYSE:DIS) were all considering a bid to take over the business.
Earlier, bankers were hired and the bidding process was started as it became clear that Twitter was looking for buyers. Bankers were trying to build up excitement and interest so that Twitter fetches as much price as possible.
Bad News Pours In
It is now learned that Disney isn’t going to make that bid after all. According to reports, the business has decided not to go ahead with the bid for the social media platform.
But that is not all. Earlier, there were reports from Google too that they won’t be bidding for Twitter (NYSE:TWTR), though the company had hired a banker to facilitate the takeover. Apple is also unlikely to make that bid, which leaves just Salesforce.com as the only potential bidder for Twitter. However, Salesforce has not yet confirmed that they will be making a bid, so that is uncertain too.
Marc Benioff, the Salesforce CEO, declined to comment in a recent interview.
Industry observers had believed that Disney will surely make the bid as the CEO of Twitter, Jack Dorsey and Bob Iger, the CEO of Disney is friends. Jack is also on the board of Disney. Also, there was speculation of a likely takeover as Disney wants new digital distribution outlets since their television strengths are starting to waver.
But that didn’t happen.
Though Twitter is currently valued at $16 billion, but according to reports, the business was asking for $30 billion. Perhaps that is too much for a business that is not profitable, and the real reason that is scaring off potential buyers.
Twitter Stock Down
Twitter’s stock has taken a nosedive amid all these negative reports. On Thursday, it went down 20.10 percent, a sharp drop, to reach $ 19.87. There could be more downside till there is a confirmed report of a sale.