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Twitter


Although Twitter Inc. (NYSE:TWTRC) isn’t officially for sale, lots of interest has popped up recently. Several companies, for several different reasons have been mentioned – some for obvious reasons – some not so obvious.

What is known is that 15 months after co-founder Jack Dorsey was brought back to the company it continues to fail to deliver the new ideas and services required for a major social media company to reach a broader audience.

Related: FIGHTING TERROR ONE TWEET AT A TIME

Enter The Standard M&A Mantra

Given the fact Twitter’s current management can’t bring more value to the company, who can? As a result M&A rumors began and now there are reports of preliminary acquisition talks from two of the most often mentioned potential acquirers.

Whether any of this will lead to a sale of the company is unknown. What is known is that each mentioned company has reasons to be interested. And so the guessing game begins.

Salesforce.com Inc. (NYSE:CRMC)

Salesforce, which has a focus on sales and marketing software, could have an interest in Twitter’s database of real-time information.

According to senior eMarketer forecasting analyst, Martin Utreras, “This (data) provides sales professionals with very valuable data about their targets, and combined with Salesforce capabilities it could become even more useful in terms of lead generation.”

Owning Twitter could bring Salesforce into contact with a large number of potential customers. In addition, Twitter is increasingly becoming a tool companies use for customer support. All these reasons seem to make Salesforce a natural fit.

On the other hand, Twitter data are already available from other sources. Salesforce wouldn’t have to buy the company to access that information. And finally, Salesforce is an enterprise company not an Internet company. It lacks the experience to take on the Twitter machine.

Alphabet Inc. (NASDAQ:GOOGC)

Getting back to that data that would certainly be helpful to a company like Alphabet and its Google operations. Using that data to power ads is just one small way the data could provide value.

Alphabet’s main advantage is the fact it is already set up to make the most immediate use of Twitter data. Profit margins could be boosted almost immediately and Twitter might be able to provide the strategies Google needs to make better use of its advertising on mobile devices.

Facebook Inc. (NASDAQ:FBC)

Facebook could also make great use of Twitter data and for much the same reason as Google. The problem here may be the historic rivalry between the two social media giants.

On the other hand, Mark Zuckerberg tried to acquire Twitter (twice), showing there is clear interest there. However, as others have pointed out, ultimately Zuckerberg may be less interested in acquiring Twitter than he is in getting rid of it as a rival.

Apple Inc. (NASDAQ:AAPLC)

Although Apple lacks a true presence in social networking, it may not be a serious contender for Twitter, despite frequent and repeating rumors to the contrary.

Part of the problem is that acquiring Twitter does not guarantee any sort of meaningful integration with the Apple brand. It merely guarantees a social network that is already able to stand on its own.

Perhaps even more importantly there’s a lack of motivation on the part of Apple. CEO Tim Cook has simply not shown a lot of interest in social networking.

Related: INTRALINKS STUDY - WHAT MAKES AN ATTRACTIVE ACQUISITION TARGET?

Meanwhile Twitter Shares Go Up

Meanwhile, as rumors continue, shares of Twitter have been on the rise, going up 21% Friday. Source told CNBC Twitter stock could sell for as much as $26 per share, about $3.50 higher than Friday's close.

In addition, Twitter's board of directors has given signs it is in favor of a deal, according to CNBC. The most often mentioned timeline says a deal could happen before the end of this year.



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