Former Twitter Inc (NYSE:TWTR) former CEO Dick Costolo says that the struggling social networking platform could still continue and succeed as an “independent company.” Several recent reports have hinted that Salesforce, Google, Disney and other companies are considering a bid for the micro-blogging site.
Twitter can be successful in other ways
In an interview with Bloomberg TV when asked about whether he thinks the social network will have to sell itself, the ex-CEO said, “I don’t think that’s the only possible outcome. I think there are lots of different ways Twitter can be successful.”
Speaking of the management team, Costolo said, “I’ve also said that I think the world of the team over there. I think Jack thinks beautifully and elegantly and clearly about product direction. Anthony and Adam and Vijaya and the rest of the senior leadership over there are tremendous.”
Last month, the most recent rumors about Twitter’s acquisition gained steam when board member and founder Evan Williams announced that the board would have to consider “the right options” for the micro-blogging giant, which has struggled with stagnation in both revenue and user growth. Twitter has been mired in management turmoil for a long time.
Costolo served as Twitter CEO for five years and stepped down from the position only last summer. Currently, Costolo is working on a group fitness start-up named Chorus. He is a partner at the VC firm Index Ventures as well.
Rivals making it harder
In recent years, Twitter has lost steam as rival social networks began to rise. Facebook and its impressive portfolio of properties — Messenger, WhatsApp, and Instagram — are increasingly leaving the micro-blogging giant behind in revenue growth, profitability, and user growth. New competitors in the space such as Snapchat, which is just five years old, are also superseding Twitter in product innovation and user growth.
Twitter has been fighting stagnant user growth for quite some time. In the second quarter, the U.S.-based firm grew its monthly active users by only 3% year over year. As investors sell Twitter’s stock, compressing its market cap, rumors have swirled that U.S.-based firm could become a takeover target. For the second quarter, Twitter posted a net loss of $107 million on $602 million in revenues.
On Monday, Twitter shares closed up 4.12% at $24. Year to date, the stock is up almost 8%, while in the last year, it is down almost 9%. The stock has a 52-week high of $31.87 and a 52-week low of $13.73.