Salesforce considering takeover of Twitter: reports
Twitter shares surge, Salesforce shares dip; Google also in the frame.
Twitter shares [NYSE:TWTR] surged more than 20% today NZT after CNBC speculation it could be taken over by Salesforce.
In a separate report, the Wall Street Journal says the two companies are in early stage talks, but it says they may or may not lead to a takeover — and that other parties may be circling.
CNBC claims Google is another possible suitor.
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. On June 30, it reported flat user growth, quarterly revenue of $US602 million and a loss of $US107 million.
Its Thursday close valued the company at $US13 billion; today's bounce puts its cap at around $US16 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.
Salesforce shares [NYSE:CRM] were down 5.6% in late trading. Although huge (its market cap is now just under $US50 billion), like other software-as-a-service companies it has found profit elusive
POSTSCRIPT: Twitter does sports broadcasting
Last week, Twitter introduced its first livestream of a National Football League (NFL) game in the US after paying $US10 million for non-exclusive rights to 10 games.
An average audience of 243,000 viewers a minute watched the New York Jets beat the Buffalo Bills, the Wall street Journal reports, adding that paled in comparison with the average of 15.4 million people who watched the game on CBS and the NFL Network.
Facebook has also been dipping its toes in sports broadcasting. On August 3 it livestreamed a game between English Premier League sides Manchester United and Everton.
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Salesforce considering takeover of Twitter: reports
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