Twitter Inc has started talks with some technology companies to explore selling itself, a person acquainted with the matter said on Friday, as the social media company ponders its slowest income growth since opening up to the world in 2013.
The deal arrangements will test Twitter’s value both as a data and multimedia company, as other social media services, for example, Facebook’s Instagram and Snapchat are extending their impressions and developing new approaches to create profits.
CNBC reported on Friday, referring to anonymous sources, that Twitter is in talks with companies that include Alphabet’s Google and Salesforce.com, and may get a formal offer soon. Twitter and Alphabet couldn’t be reached immediately for comment and Salesforce declined to comment.
Twitter shares climbed the most since its stock market debut in 2013, up 21 percent to $22.59, giving the company a market capitalization of near $16 billion. Twitter has been a close consistent focus of takeover speculation in the midst of obstinately disappointing sales and user engagement. In its latest quarterly earnings statement, Twitter’s revenue missed Wall Street estimates and the income forecast for the present quarter of $590 million US to $610 million US was well reported figures underneath the average analyst estimate of $678.18 million.
As rivals, for example, Instagram and Snapchat pick up footing with advertisers and social media users, investors have addressed to what extent Twitter could persist as a stand-alone company. Co-founder Jack Dorsey came back to the company as CEO in 2015, yet his arrangement for reviving Twitter is, as a best case scenario, seen as unfinished.