Twitter has reportedly been engaged in talks to sell itself, and it appears to be running out of potential suitors. However, The New York Times claims the micro-blogging giant is in ongoing talk with at least one buyer — the online software giant Salesforce. The newspaper cites two people involved in the discussions. Even though Salesforce.com has faced pushback from some of its major investors over a potential acquisition, the talks are said to be continuing.
Dorsey now not averse to selling Twitter
The New York Times said that Twitter CEO Jack Dorsey is now not averse to selling the company as long as it is best for the integrity of its product. For Dorsey, this is a change of heart as he was said to be resistant to this deal before because he was concerned that the micro-blogging giant would be sold for parts. One source told the NY Times that for now, Twitter executives are pressing on as if the company will remain an independent entity.
On Monday, shares of the social network plunged after reports that potential buyers were backing off. Bloomberg reported over the weekend that Disney, Salesforce.com and Google are all now unlikely to bid to acquire the micro-blogging giant. Unnamed sources told Bloomberg that Twitter canceled a board meeting to discuss a sale.
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The company’s stock dropped as much as 14% and ended the session down 11%. In the past week, the shares have shed more than 26% of their value. According to Bloomberg, the social network will focus on its burgeoning live video strategy again.
Concerns piling up for Twitter
During this presidential election cycle, the social network is in the limelight as a go-to discussion forum, but the challenges it faces remain acute. On Oct. 27, the company, which is still dealing with questions about its slow growth in revenue and users, will report its next quarterly earnings.
Twitter is facing growing concerns around the potential threat of a choppy stock price, an activist shareholder lawsuit and an increasing internal fear among employees that it is susceptible to forces not under their control. Executives, including Dorsey and many on the board, wanted some more time to prove the social network as an independent company, even when they had a fiduciary duty to consider all options, notes the NY Times.
Citing insiders, the NY Times said that some employees have stopped showing up for work completely, while rank-and-file staff members are annoyed about being kept in the dark about the company’s future. The social network said it would cut more than 300 jobs as well.