Twitter reportedly considering a sale, with Google and Salesforce circling
The blue bird may finally find a new home.
Twitter has received interest in a potential purchase, CNBC reported via anonymous sources Friday, which could lead to a bid in the near future. News of the report sent Twitter shares climbing by 21 percent in early morning trading on the New York Stock Exchange.
Interested buyers include Google, Salesforce and other technology companies, according to CNBC.
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The news follows a company board meeting earlier this month when Twitter directors reportedly mulled a sale as well as cost-cutting measures, Recode reported.
It's been a tumultuous year for a Twitter, with the stock falling by 30 percent. Investors point to stagnant user growth and shrinking advertising growth. In fact, one shareholder filed a lawsuit against Twitter last week, claiming that the company misled investors on its growth metrics, Bloomberg reported.
Salesforce declined to comment on rumors.
However, Vala Afshar, chief digital evangelist at Salesforce, provided some insight on the value he sees in Twitter.
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Twitter has attempted to reinvigorate the service since Twitter cofounder and product visionary Jack Dorsey retook the helm as CEO last October. Dorsey's first push was Moments, an editorially curated feed of tweets and videos.
Recently, the company has been building out its capabilities in live-streaming video. Twitter has inked deals with several networks to host streams and create exclusive shows.
Just last night, Twitter streamed its second Thursday night football game. The first game attracted 2.1 million unique viewers, paling in comparison to television, but decent for a new effort by the struggling company. Twitter will also stream the general election debates.
The stock surge provides a good indicator that a sale could be beneficial for the company.
Twitter "has made various changes to improve its platform but earnings continue to decline. The buyout is their only hope at this point because clearly they are not able to improve their earnings on their own," Cindy Kleinstone, portfolio manager of AnalyzeWallStreet.com, wrote in an email.
Rumors of a potential sale are common for Twitter, especially by Google.
Phil Davis, CEO Philstockworld.com and PSW Investments, told Mashable that Google may not be able to buy the company due to anti-trust measures and instead pointed to a telecom such as Verizon who is currently closing a deal with Yahoo.
"Any media company would love to have them too but, on the whole, I think it's too early in the turnaround for them to be selling," Davis wrote in an email.
Other analysts say that a private equity firm would make more sense, allowing the company to innovate and grow under less scrutiny.
Twitter and Google did not immediately respond to request for comment from Mashable.
Kerry Flynn is a business reporter for Mashable covering the tech industry. She previously reported on social media companies, mobile apps and startups for International Business Times. She has also written for The Huffington Post, Forbes and Money magazine. Kerry studied environmental science and economics at Harvard College, where she led The Harvard Crimson's metro news and design teams and played mellophone in the Band. When not listening to startup pitches, she runs half-marathons, plays with puppies and pretends to like craft beer.
