Twitter’s Legacy of Abuse: A Potential Deterrent for Potential Acquirers?

Last month, top-tier tech giants poised themselves in the race to acquire social media titan, Twitter. Among these potential bidders stood Salesforce, a prominent name in tech, who eventually withdrew their intention to bid. The withdrawal of Salesforce, the last of the prospective bidders, hints at underlying problems that Twitter must contend with.

Twitter still thrives as a bustling hub of user interactions and discussions, yet its fiscal situation is far from being described as thriving. Traditionally, a simple shift in management could rectify such financial ailments. However, a more deep-rooted issue impacting the attractiveness of Twitter lies in its reputation “tweet” and sour. Twitter’s image, marred by countless allegations of a widespread abuse culture, might be keeping potential buyers at bay. 

In a revealing report by Bloomberg, Walt Disney Co. decided to abandon their pursuit for Twitter, raising alarms over the incessant trolling and uncivil discourse prevalent on the platform. Executives feared these elements could tarnish the wholesome family image Disney proudly upholds, according to sources with understanding of their strategic decisions.

In fact, Disney demonstrated serious intent to acquire Twitter, even employing heavyweight investment banks, JPMorgan Chase & Co. and Guggenheim Partners LLC, to analyze and evaluate the microblogging site. However, the association between iconic, family-friendly brands like Disney, creators of classics such as “Cinderella” and “Finding Dory”, and a platform notoriously recognized as a breeding ground for unchecked intolerance and online bullying, raised scepticism among some of Disney’s largest investors. 

Twitter has consistently faced criticism for its languid response to burgeoning abuse and harassment on its platform. Instances of racial abuse against celebrities like comedian Leslie Jones have ignited fiery debates around Twitter’s commitment to maintain a civil discourse. Despite the storm of backlash and threats from Jones to deactivate her profile, Twitter only moved to ban the account of infamous Internet provocateur, Milo Yiannopoulos, who American media identified as a primary harasser of Jones.

Similarly, Twitter has been repeatedly exploited by terrorist organizations such as ISIS for recruitment purposes, with Twitter’s slow response to delete such accounts leads to increased criticism. This lethargic stance even brought about threats on the lives of Twitter CEO Jack Dorsey and Mark Zuckerberg of Facebook by the terror outfit.

Regardless, Twitter remains a preferred platform for celebrity outcries, brand launches, and significant announcements. To add to its appeal, Twitter has been actively pursuing contracts with leagues like the NFL to stream live games, besides devoting increased resources towards advertisements, with a particular focus on videos and live streaming.

The effectiveness of these steps will only truly be unveiled once Twitter dispenses its third quarter earnings report due next week, during the typically volatile earnings season.

Further compounding Twitter’s issues is the combination of unprofitability and an astonishing market value of nearly $12 billion, according to Bloomberg. This hefty price tag presents a substantial obstacle for potential buyers, even the likes of Disney, whose market value is 12 times that of Twitter’s.

While Twitter shares edged up slightly by less than 1 percent to $16.87 in early trading on Tuesday, the lack of prospective buyers underscores the pressing issues that the company must address before being deemed an attractive investment opportunity.