Is Salesforce.Com, Inc. (NYSE:CRM) to bid for Twitter Inc (NYSE:TWTR) now that the latter is running out of potential bidders?
Salesforce to Bid for Twitter
Salesforce has been one of the earnest suitors of Twitter since the rumors of the latter considering a buyout for an ambitious turnaround began rising.
According to people familiar with the matter, Twitter still nonetheless wants Salesforce to bid for Twitter amid their ongoing talks about a potential deal.
Moreover, Jack Dorsey, Twitter CEO, is now more confident about selling the company, believing that it is the best option for consumers and employees alike. It can be recalled that Dorsey used to detest the idea of a buyout consideration, worrying that it might compromise the integrity of the company.
What’s Next for Twitter
While Twitter is currently restructuring its core business, social media networking platform Twitter, the executive management is skeptical about these efforts paying off in a timely manner— that is in consideration of the increased volatility of the stock and the heightened doubts of its shareholders.
“The lack of growth in users and engagement underscore that Jack’s initiatives thus far haven’t really been effective,” explained Robert Peck, a SunTrust Robinson Humphrey, Inc. analyst.
The dilemmas of Twitter are now far beyond the poor sales and stock market performances. Many employees have become way too frustrated about the uncertainties that they have stopped showing up at their offices.
"… a handful of employees have stopped showing up for work entirely, several insiders said." https://t.co/jYMaZovk7p
— Mary Catherine (@mcwellons) October 11, 2016
The company had already cut hundreds of jobs as a result of the ongoing turmoil. Now, Twitter is reportedly considering another series of layoffs.
Both Salesforce and Twitter have declined to comment on the matter.
Many potential bidders do not seem to be as eager as Salesforce to acquire Twitter. If the social networking giant wants Salesforce to bid for Twitter, it will likely be for formality purposes only— given the fact that both companies are already discussing potential deals.
On Monday, Salesforce has closed at $75.10 while Twitter has concluded at $17.56.
Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with our FREE daily email newsletter.