Who Will Win The Race To Buy Twitter?

Twitter founder and CEO, Jack Dorsey would have never expected the day when he would have to sell his company. But it’s no longer a secret that Twitter’s not doing well and is out for the taking. Initially as the news spread, there were numerous reports about some of the big companies, such as google, Microsoft, Disney, Apple, Salesforce etc, all wanting to participate in the race to buy Twitter.

After a few months however, things seem to be a bit different. It seems that there is actually no race going on at all. All the companies, initially lining up to buy Twitter, don’t appear to be interested anymore. An interesting fact to be noted here is that all these big names, which were potential bidders for the social media platform, changed their minds in just a period of a few months.

As the rumors of the sale spread, the share price of Twitter ballooned by an approximate value of 45 percent, but also, at the same time, when it came to light that Google is pulling out of the race, the stock price of Twitter came down by around 9 percent.

Why such a scenario?

From my point of view, I think that Twitter has not been able to compete with its rival Facebook. While Facebook has seen a gradual rise in both users and revenue over the years, Twitter’s revenue has been constantly declining. All these factors indicate that Twitter does not have a proper business model, which is mostly likely responsible for all its miseries.

It would not be fair to say that Twitter is not popular. Twitter has had its share of popularity in the past. In fact, at one point of time, Twitter was dangerously close to overtaking Facebook as the number one social media platform. However things are different now. Therefore, the price tag of $20 billion is simply not worth it. This is the main factor due to which many giants pulled out of the race. It’s a stalemate for Twitter right now; it wants to be sold but there are no potential buyers. The race which started with numerous big companies is now limited to just one or two. Recently, even Disney struck off its name from the list. This leaves only Salesforce as a potential buyer, which again, seems to be going southward.