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Twitter could field a buyout offer as soon as this week

Salesforce, Google, Disney in the frame. 

Thu, 06 Oct 2016

Twitter could start fielding buyout offers by the end of this week, according to a Wall Street Journal report.

Reuters says the social network wants to wind up a sale by the end of this month.

Suitors are said to include Salesforce, Google (via its holding company Alphabet) and Disney.

Investors are betting there's something to the rumours.

Twitter shares [NYSE:TWTR] surged more than 20% on September 23 as CNBC broached the first speculation about a deal.

Today, with apparent leaks about the buyout timeframe, they jumped 5.74%.

Twitter's market cap peaked at $US40 billion in December 2013, shortly after its IPO.

However, the social media platform has struggled to monetise its 313 million users, and the return of co-founder Jack Dorsey as chief executive has failed to turn things around (perhaps because he is still spending half his time on his other startup, mobile payments outfit Square).

On June 30, Twitter reported flat user growth, quarterly revenue of $US602 million and a loss of $US107 million.

Its September 22 close valued the company at $US13 billion; the run of speculation since has pushed it up to just over $US17 billion.

Customer relationship management specialist Salesforce has been in the "social listening" game (monitoring mentions of brands, and placing marketing) since it bought Radian6 for $US326 million back in 2011. However, it's struggled to integrate Radian6 with its core product.

Google's various attempts at social media, notably Google Plus, have fallen flat. Buying Twitter would give it a jump-start.

Disney is said to see Twitter as a way to expand the reach of its sports and entertainment programming.

Salesforce shares [NYSE:CRM] fell 5.6% when the deal was first speculated on September 23. Today, amid the renewed intrigue, they fell another 5.8%. Although huge (its market cap is now just under $US50 billion), like other software-as-a-service companies, Salesforce has found profit elusive and there appears to be limited shareholder appetite to add another money-losing business to its stable.

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Twitter could field a buyout offer as soon as this week
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