The Potential Power Players for Twitter’s Acquisition

As rumors of a possible Twitter buyout gain traction in the tech world, it’s time to speculate who might be the new owner of this social media giant. It’s been suggested that potential buyers may have to dig deep into their pockets, as Twitter might command an asking price of around $30 billion. So, who are these possible magnates with a desire to acquire Twitter?

Firstly, let’s familiarize ourselves with essential facts about Twitter.

Company name: Twitter, Inc.

Year of establishment: 2006

User Statistics:

Twitter boasts 313 million active users, with more than 1.3 billion accounts created to date. An impressive 83 percent of world leaders use the platform, and nearly one-third of Americans have a Twitter account. The site is primarily mobile-based, with 80% of users accessing it via their devices. On average, each user has 208 followers, even though 391 million accounts have no followers at all. Twitter has a global reach with 79 percent of its user base located outside of the United States. In terms of celebrity presence, Katy Perry leads the pack with over 93 million followers, trailed by Justin Bieber and US President Barack Obama.

Tweet Stats: Internet Live Stats show that Twitter users generate 6,000 tweets per second, corresponding to more than 350,000 tweets per minute and about 200 billion tweets per year.

Number of Employees: 3,900

Revenue: Twitter reported revenues of $602m in the second quarter of 2016, closely following the $595m revenues from its first quarter.

Market Value: Estimates of Twitter’s market value hover around $30b, although Forbes’ analysis contends it stands closer to $15.7b.

So, which companies have the interest and financial might to acquire Twitter? Several have shown significant interest:

Microsoft

A behemoth in the tech world, Microsoft’s diverse acquisitions in 2016 showcase the company’s expansionary plans. Their well-publicized intention to acquire LinkedIn for $26.2 billion proves their willingness to penetrate the social media market. This acquisition of a professional networking site like LinkedIn could extend Microsoft’s cloud services to a wider audience. Microsoft’s past pursuits include a bid for Yahoo in 2008, and a combined investment and acquisition attempt for Facebook in 2007. Nevertheless, whether Microsoft wishes to dive into Twitter’s potential remains a question.

Google

While Google’s attempted acquisition of Facebook in 2004 and 2007 ended in a no-sale, the tech titan’s creation of Google Plus proved its ambitions in the social media sphere. Google could bring a lot to Twitter, particularly by integrating its AI resources and search capabilities into the microblogging platform. Not only would this strengthen Google’s competitive edge in social media, but their financial and technical resources could also drastically change Twitter’s fate.

News Corp

News Corp’s purchase of once-popular Myspace for $580m in 2005 marked the company’s initial venture into social media. However, News Corp’s interest in revitalizing its social media presence with a potential Twitter acquisition remains uncertain due to its more modest resources compared to Microsoft and Google.

Salesforce

With a market capitalization of $55 billion, Salesforce has the fiscal firepower needed for a possible Twitter acquisition. Analysts speculate that this software company may wish to expand its footprint in the tech world, making Twitter an enticing purchase.

Facebook

A direct competitor of Twitter, Facebook has the financial means to acquire the rival platform. Although this would likely result in Twitter’s dissolution into the Facebook ecosystem, it’s nonetheless a possibility worth considering.

Walt Disney

According to Bloomberg, Walt Disney is amongst the major players considering a bid for Twitter. Acquisition of Twitter aligns with Disney’s tech-focused growth strategy considering Twitter’s video distribution capabilities. The mass media conglomerate, famous for its content creation, could leverage Twitter’s platform to extensively distribute its digital content and widen its global reach.

Could a country be a prospective buyer? If so, enter Saudi Arabia.

Historically, wealthy nations like Saudi Arabia have invested massively in tech companies, as evident from the Saudi Wealth Fund’s $3.5 billion investment in Uber in July 2016. In 2011, Saudi Arabian Prince Alwaleed bin Talal invested $300 million in Twitter, which equated to a 3.6 percent stake in the company.

While these are potential contenders, recent developments suggest that Microsoft, Walt Disney, and Salesforce may be leading the race. Twitter’s acquisition could conclude before year’s end, putting an end to this drumroll of speculations.