As reports surface about a possible acquisition of Twitter, whispers abound that the microblogging titan could command a staggering $30 billion price tag. Conjecture is already rife as to who the potential suitors might be.
But before we delve into that, let’s refresh our understanding of Twitter’s current landscape with some quick facts:
* **Company Name:** Twitter, Inc
* **Established:** 2006
* **User Demographics:** Over 313 million active users globally, with 1.3 billion accounts created to date. Notably, 83% of the world’s leaders have a presence on Twitter. Within the US, 29.2% of social media users inhabit the Twitter-sphere, with 80% of active users primarily accessing the site via mobile devices.
* **Tweet Statistics:** A whopping 6,000 tweets are sent per second, culminating in over 350,000 per minute, and an astonishing 200 billion annually.
* **Financial Status:** Twitter reported a revenue of $602m in the second quarter of 2016. Meanwhile, the brand’s market value is estimated between $15.7 – 30 billion.
In light of these facts, consider the potential acquirers of Twitter:
**Microsoft**
The software behemoth Microsoft has already made significant strides in high-profile tech partnerships and acquisitions this year, most notably, the $26.2b acquisition of LinkedIn – a move that could potentially expand the reach of Microsoft’s suite of cloud services. Given Microsoft’s previous interests in Yahoo, Facebook and its $7b acquisition of Nokia Lumia, the potential acquisition of Twitter could be a natural progression – an avenue to offer radically integrated and direct business solutions.
**Google**
Google’s attempt to dip its toes into the social networking sphere was marked by the creation of Google Plus. However, the lack of user engagement clearly indicated the platform’s inability to compete with major social networks such as Facebook, Twitter and Snapchat. An acquisition of Twitter could potentially offer Google a much-needed boost in its social networking space. The amalgamation of Google’s AI with Twitter’s platform could lead to seamlessly integrated and personalized user experiences.
**News Corp**
News Corp, a legacy media company, set the precedent for traditional media exploring social media with its acquisition of Myspace back in 2005. While their deep pockets may not compare to the likes of Microsoft and Google, their potential interest in a modern social media company such as Twitter cannot be discounted.
**Salesforce**
With a market capitalization of $55b, Salesforce – a significant player in the enterprise software industry – has the financial capacity to acquire Twitter. Analysts even speculate that Salesforce may have a keen interest in expanding its reach into the social media industry.
**Facebook**
While it seems unlikely for Twitter to end up in its direct competitor’s hands, Facebook’s track-record of strategic acquisitions (Instagram and WhatsApp, for instance), along with its abundant financial resources, make it a potential contender in this acquisition race.
**Walt Disney**
This potential suitor might come as a surprise to many, but rumours around Walt Disney’s interest in Twitter have been escalating. If Disney were to acquire Twitter, it is conceivable that the entertainment giant could utilise the platform as a distribution channel, capitalizing on Twitter’s worldwide user base.
**Saudi Arabia**
The most unexpected potential investor in Twitter could be Saudi Arabia. With a massive wealth fund of $2tr at its disposal, the oil-rich nation has shown an interest in tech sector investments, evident from its $3.5b investment in Uber. Moreover, Saudi billionaire Prince Alwaleed bin Talal has already invested $350m in Twitter, increasing his stake to 5%.
Among these potential buyers, recent trends point towards Microsoft and Walt Disney as serious contenders. Salesforce is also making significant moves, while Google remains largely silent. Ultimately, Twitter may see a new owner by the year’s end.
What do you think? Let us know your thoughts in the comments section below!
Discover more from TechBooky
Subscribe to get the latest posts sent to your email.