There has been growing speculation for months of a potential Twitter (NYSE:TWTR) sale. There were many interested buyers as well. Google, Verizon, Salesforce, Microsoft and the Walt Disney Co. (NYSE:DIS) had all expressed interest in the social media site. They were all said to be working with banks to formalize the potential bid.
Twitter’s stock was also going up in anticipation.
However, soon after, one company after another began to back out, including Disney, whose CEO Bob Iger is said to be a close friend of Jack Dorsey, Twitter’s CEO.
They have all gone the other way except Salesforce.com, which is yet to come out with a statement. Investors might have put pressure on these companies, as Twitter is a loss-making business. There are other complications too.
Twitter’s stock has since then crashed. In the last 12 months, the stock has gone down by 35 percent. That was just before the board announced that they were considering a sale.
What Will Twitter Inc Do Now?
It is learned that Twitter is beginning to realize that a sale may not happen after all, and is thinking of focusing on live video streaming. Last Friday, Twitter had planned a board meeting, but this was cancelled at the last moment.
Twitter now plans to attract more users through live video streaming. They have recently been entering into partnerships for politics, entertainment and sports content with the National Football League’s Thursday night games for example. The games will be streamed on Twitter along with the comments. The US Presidential debate was also streamed live on the platform.
That is not all. Even those without a Twitter account at this time may also be allowed new ways of using the service. This may help them attract new people eventually. Twitter is also planning to share revenues from video advertisements on the platform, much like YouTube.
The Limited Growth of Twitter
Indeed, the social media site has to find new participants, as Twitter (NYSE:TWTR) has remained restricted to just celebrities, politicians and journalists. User engagement has also been low. While Facebook has blossomed over the years, attracting millions of new people from around the world, Twitter hasn’t grown much in the last few years. There has been growing concerns of abuse and harassment on the site as well.
This live video idea has to work for Twitter for the business to survive.