Twitter has informed potential buyers that it is seeking to conclude the negotiations about selling itself by the time it reports third quarter earnings on Oct. 27, reports Reuters, citing sources familiar with the matter. The social network started mulling a sale only last month, so the timeline is quite ambitious considering most acquisitions and mergers.
Twitter aims to clear things fast
This timeline is certainly an indication that CEO Jack Dorsey is trying to provide clarity about the future of the micro-blogging giant as quickly as possible to shareholders. People familiar with the matter told Reuters that binding acquisition offers are due in the next two weeks, and the micro-blogging giant already has settled on the list of potential acquirers.
Reuters said that Walt Disney Co. and Google parent Alphabet Inc. are considering bids, and Salesforce.com is in the running as well. However, the Reuters sources cautioned that it is not certain that the process will lead to a sale.
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If Salesforce prevails, the micro-blogging site might turn its focus to customer service communications and mine its database of tweets for business intelligence. The company would be most interested in Twitter’s news and social dimensions, whereas Disney would probably see it as a way to expand the reach of its entertainment and sports programming, notes Reuters.
Google, Disney unlikely to bid?
Meanwhile on Wednesday, Re/code reported that Google would not move forward with a bid. Also several sources told the website that Apple was also unlikely to be a potential suitor. Another source told Re/code that Disney, which was considering a bid, has planned to opt out as well. This news should slow down the speculations about a possible sale of the micro-blogging site.
Google acquiring the micro-blogging site does make sense, so its decision to not bid is surprising. But passing on Twitter does not mean that the search giant is giving up on consumer communications completely. Recently it launched two apps – an artificially intelligent messaging app called Allo and a FaceTime-like video app called Duo. As for Apple, its main focus is on its flagship consumer products, not social networks.
Twitter missed sales expectations in both the first and second quarters. In addition, it has yet to produce a net profit in 11 quarters as a public company. The social network has failed to keep up with other social media platforms like Facebook, Snapchat and Instagram.