Ok ok, the list keeps narrowing. Salesforce has categorically stated that it is not interested in buying Twitter. This sent Twitter shares down about 5 percent yesterday and the news that Salesforce won’t be buying the company is bad news for the micro blogging site.
But I have another crazy name and that’s Amazon. I made the case for them in my last article which you can find here. It sounds crazy but hear me out.
Anyway, the news of Salesforce not buying Twitter means the company may now have to find new ways to grow and compete with its peers like (and I can’t believe I’m saying this) Snapchat. Twitter CEO Jack Dorsey who is also the payment Company Square may be forced to make a decision and it looks like he’s not ready to just leave Square and the only option left is that he could be leaving a company he’s now leading for the second time again.
Salesforce CEO Marc Benioff told Financial Times “In this case we’ve walked away. It wasn’t the right fit for us,” and this sent Twitter shares 5 percent lower yesterday at $16.88 while Salesforce shares rose 5 percent to $74.27. Well the 5 percent up and down is just a trading coincidence.
While it was widely reported that Twitter was privately asking potential buyers to budget $30b at some point, we later heard that figure was cut by another $10b but with last Friday’s trading loss, Twitter may now be valued at $12b.
Twitter is carrying out a series of measures it thinks could boost the value of the sie and eventually drive growth like removing the 140 character rule in direct messages, opening up its Live feature to all users, signing a deal with the NFL to stream games, focus more on videos among others. None of these seemed to have driven growth but I guess we may not be able to accurately judge until when the report their third quarter earnings later this month.