Twitter Inc is in discussions with a number of potential suiters after Salesforce.com Inc. showed interest in buying the micro-blogging site, according to a recently report published by Bloomberg citing sources close to the matter.
Shares of Twitter jumped more than 21 percent on Friday following the news. The company’s share price has dropped about 19 percent over the past year, making it a potential acquisition target. A number of tech giants may be interested in acquiring the company due to its data, user base and particularly its influence in politics.
The social networking site’s board conducted a meeting several weeks ago after receiving interest from Salesforce, the report added. Subsequently, Twitter hired Goldman Sachs Group and Allen & Co. to explore other potential buyers including Salesforce.
There is no surety that a transaction will occur, though Twitter could speed-up discussions with potential bidders that may result in a deal in the coming weeks. Besides a complete sell-off, the company is also working on options such as divestiture of non-core assets.
Twitter recently stepped into live streaming space by broadcasting NFL games for free and enabling its users to tweet alongside the live match. The company is making similar content deals related to entertainment, business and politics.
The microblogging site is usually rumoured as a possible takeover target for tech players, particularly Alphabet Inc.’s division Google, which already collaborates with Twitter to display recent tweets in its search results.
An analyst at Morningstar, Ali Mogharabi stated that Alphabet would be the top acquirer for TWTR since it has not succeeded to crack social media on its own, in spite of several efforts. “From a strategic standpoint, we think it would be more beneficial for Alphabet as opposed to Salesforce,” he added.
Morningstar estimates that the San Francisco-based social network could be acquired for $22 per share.