Twitter Inc (NYSE:TWTR) may be up for sale as one of the strategies to save the business. The social media company has been struggling to maintain attractive revenues and keep up with the social media competition.
The rumors of Twitter wanting to sell itself come just three years after the company’s IPO. Twitter is one of the most popular social media platforms but the firm has slowly been losing its appeal as people jump onto other innovative platforms. Snapchat and Facebook Inc (NASDAQ:FB) are two of the companies with the most popular social media platforms. Facebook has so far managed to stay on top of the game by expanding its portfolio while Twitter has not been so fortunate.
The current situation with Twitter is similar to that of Yahoo! Inc. (NASDAQ:YHOO). Both have had numerous leaders who seem to have set little direction for the company. Both companies were considered to be the future of the internet industry at one point in time. If Twitter fails to sell itself soon, it might end up facing the same fate as Yahoo. The latter once had a market capitalization of $125 billion but its core internet business it was sold to Verizon Communications Inc. (NYSE:VZ) for only $4.8 billion.
Twitter is expected to take advantage of a sell opportunity rather than waiting for the situation to worsen. Either way, the company will have to make a deal that is most likely valued lower than its highest market cap. The only other alternative for the company is to come up with an elaborate strategy that will help to boost revenue and growth to the level of its competitors. This seems unlikely.
A CNBC report claims that Twitter’s board of directors is seeking a sell deal and there are numerous firms that have been listed as potential buyers. Some of them include Alphabet Inc (NASDAQ:GOOGL) and salesforce.com, inc. (NYSE:CRM).
Twitter’s stock closed the latest trading session at $22.62, marking a $3.99 or 21.42% improvement from the close in the previous session.