The social network in a dilemma and might have to take a solo path
Twitter Inc shares tumbled 11.5% after reports that more bidders had lost interest in a takeover bid. Saleforce.com Inc, an American cloud computing company, was one of the last companies believed to be interested in buying the troubled social network, but on Friday they said they would not make a bid.
The sudden change of heart from the Salesforce Chief Executive Marc Benioff, who previously praised Twitter by calling it an “unpolished jewel,” has left them high and dry as other prospective suitors followed suite, the list included Walt Disney Co. and Google parent Alphabet Inc.
Lack of potential buyers interest means that the social-media company would have to forge ahead on its own. Twitters Chief Executive Officer Jack Dorsey now has to work with his overcome the sluggish user growth, heavy losses amid mounting competition from the likes of Facebook’s Instagram and Snapchat.
While there is a flutter of hope that there might be interest from another company, for now, Twitter’s fate, will rest on the shoulders of CEO Jack Dorsey, who so far has failed to prove he can revive growth in a way that can propel advertising revenue.
In the second quarter, Twitter added just 1% more users to give it 313 million, and its revenue growth shriveled for the eighth straight quarter to under 20%.
Twitter grew swiftly for years after it was established in 2006, considered a unique and influential status in the global media ecosystem.
However, Twitter has been troubled by management turmoil since its earliest days and has long been criticized for lack of product innovation and, more recently, lack of user growth.
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