It seems Twitter is set to throw in the towel. Twitter was valued at $24 billion back in 2013 when it opted to go public. However, since then, the social media company has failed to meet its investors’ expectations. The company brought back its co-founder Jack Dorsey to work as the Chief Executive Officer, but not much has been achieved.
The growth of the company is slow, and losses are continuing to accumulate. The social media company is expected to start off on the formal sale proceedings in the next coming few weeks. Despite its poor performance and accruing losses, several companies have been reported to be interested in purchasing the social media company with Microsoft being one of them.
A handful of businesses is interested in buying Twitter according to recent reports. Microsoft has been said to be one of the businesses that intend to place a bid for the social media platform. According to TechCrunch, the potential bidders if Twitter besides Microsoft is Google, Salesforce, and Verizon. Twitter shares have risen to 22 percent following the move from the interested bidders.
News indicate that Microsoft intentions of purchasing the social networking site are to keep Salesforce from acquiring it. Microsoft hopes that their interest in buying Twitter will drive up its price to the cloud computing company from acquiring it. The same scenario was seen back in June when Salesforce showed an interest in buying LinkedIn. Microsoft later moved in swiftly and bought the company LinkedIn for more than 26 billion US Dollars.
According to CNBC reports, a deal between Microsoft and Twitter is expected to be announced before the end of 2016. Sources close to CNBC also indicated that talks between the two companies were picking momentum. CNBC’s David Faber suggested that Twitter is edging towards a formal sale process.