Friday, September 23, 2016

Twitter would discuss with several buyers – Boursier.com

NEW YORK (Reuters) – Twitter has engaged in discussions with several companies in the telecom sector and high technologies in view of its possible redemption, has learned Friday of source close to the file, information which could mark the beginning of a new stage to the micro-blogging site, whose financial health is far from equalling the notoriety.

The possibility of a buyout of Twitter is mentioned regularly for several months, the company is facing stagnation in the number of its users, to the weakness of its advertising revenue and financial losses that continue to be in the range of hundreds of millions of dollars per year.

And even if, after ten years of existence, Twitter has acquired a global status of a source of information, entertainment, commentary and debate.

analysts have long considered Google, the main group subsidiary Alphabet, as a potential buyer logic to Twitter.

specializing in the management of customer relationships online Salesforce.com also looked into the issue, said the same source, a more surprising to many observers because the company has a clientele of mainly professional and is virtually absent from the mainstream media.

CNBC, citing anonymous sources, reported on Friday that Twitter was in discussions with a number of companies including Google and Salesforce, adding that it could soon receive a formal offer of redemption.

Twitter and Alphabet have not responded to requests for comments. Salesforce has refused any statement.

TWITTER is VALUED $ 16 BILLION

The telecommunications operator Verizon, also quoted Friday by several media outlets as a possible buyer, said he wouldnít comment on the rumors about mergers and acquisitions but, he says, having never submitted any offers to Twitter.

A Wall Street, the Twitter action, gaining more than 21% 22,60 $ to within an hour of closing. At the same time, the title Salesforce.com lost 5.7% and Alphabet 0,1%.

Twitter, whose market value is around $ 16 billion (14.2 billion euros), announced in late July, the weakest growth of its quarterly revenue since its ipo in 2013.

The group, which has 313 million active users, a figure up 3% on a year ago, has disappointed the expectations of financial analysts in the first two quarters of the year and has not recorded a single dollar of net income over the 11 quarters ended since its ipo.

in the Face of the rise of apps such as Snapchat and Instagram to advertisers and users of social networks, investors doubt its ability to stand as an independent company.

To Ali Mogharabi, an analyst of Morningstar, Alphabet seems to be the best buyer possible, however, that there has not even managed to become firmly established in the social media despite several attempts.

“From a strategic point of view, we believe that this will be of more benefit to Alphabet to Salesforce,” he said.

The executive chairman of Twitter, Omid Kordestani, is a former executive of Google. Its co-founder Jack Dorsey took over the reins of the company in 2015 but he struggles to regain momentum in the early days.

(Greg Roumeliotis and Liana B. Baker, with Dan Burns and Sinead Carew; Benoît Van Overstraeten and Juliette Rouillon for French service, edited by Marc Angrand)


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