Google and Salesforce Contemplate Acquiring Twitter: A Move Worth Serious Consideration

News broke out just shy of a month ago about a possible acquisition of Twitter, inciting a whirlwind of speculations. The rumors propelled when Twitter’s executive board convened to deliberate on a broad spectrum of issues related to the popular microblogging platform. Since then, however, the situation seemed to quiet down, with many dismissing the acquisition as a mere rumor.

Yet just a few hours ago, CNBC signaled that the idea of Twitter’s acquisition could be more than just hear-say. It reported that sale negotiations may be progressively moving forward and that the prestigious lineup of potential buyers includes tech giants such as Google, business software trailblazer Salesforce, and media titan Rupert Murdoch’s News Corp. The gossips about the potential sale ignited a thrill among investors as Twitter’s shares experienced a catapulting surge on Friday.

It’s important to note that Twitter’s BoD’s interest in a potential transaction, as sources close to the situation suggest, does not directly guarantee an imminent sale. However, it is also pointed out that the discussions are gaining traction and could potentially culminate into a successful deal before this year’s curtain call.

Back in 2013, Twitter flaunted a worth of approximately $40bn. Fast track to today, the company’s worth estimate has been cut in half, with a considerable amount of investors contending that it may have declined even further, dropping below $20bn.

The likely completion of the deal by the end of the year is a timeline that could see a significant increase or decrease in shares. The erratic nature of the business world ensures that three months is sufficient time for dramatic fluctuations in share price.

The ongoing discourse on Twitter’s sale leads to significant division among investors. On one side of the spectrum, investors are hopeful that an acquisition by a powerful entity could bolster the company’s financial standing. On the other side, there are those suggesting that Twitter should willingly put itself up for sale in an attempt to resuscitate the brand’s diminishing reputation.

In a very reminiscent scenario, Yahoo, which once held a mighty $128bn valuation, got sold for a mere $4.8bn. Now, even that number hangs in uncertainty due to the recent revelation regarding the massive hack back in 2014 that resulted in 500 million compromised user accounts. Much like Yahoo, Twitter has experienced its fair share of obstacles, from stagnating user growth to unwavering efforts at reform that were largely unsuccessful. With numerous strategies leading to dead-ends, the storied rise and fall of these two former online titans reveal striking parallels.

Just as Yahoo was forced to consider a merger, Twitter might be in a similar position now, prompting investors to consider cashing out before a deal is sealed. Looking at the existing landscape, one can’t help but observe that where there’s smoke, there’s usually fire – and in Twitter’s case, that flame might, indeed, signify an impending sale.