It is confirmed. Salesforce has officially bowed out of the race to acquire Twitter. The news comes as a blow to the social networking platform, which has been a lodestone to all sorts of trouble lately. It was being hoped that a Salesforce acquisition could provide the company — and its board — with a quick way out of their troubles. Clearly, that is not going to happen anymore.
The news comes from the very highest quarters. Financial Times cites Salesforce CEO Marc Benioff himself, as confirming that his company would not be taking part in a bid for the social media platform.
According to Benioff,
In this case we’ve walked away. It wasn’t the right fit for us.
Although, it was probably more a question of Twitter’s none too great prospects, rather than being a matter of the right fit. Twitter will likely come with a whole bunch of issues — including lawsuits — and whoever acquires it, might just have to spend considerable resources towards straightening them out first.
The announcement brings down the number of major bidders to zero. Disney and Google, both of whom were reported to be seriously considering a Twitter acquisition, have already removed themselves from the running. With Salesforce out of the way as well, those hoping for a Twitter acquisition anytime soon, are likely to be disappointed.
The news saw Twitter stocks, which had surged when multiple companies were said to be vying to acquire it, plunge down by almost 6 percent.
Amidst all those tweets and online activity, Twitter has been in some serious trouble these past few quarters. Growth has seriously slowed and profits have dipped in face of strong competition from Facebook and others. Investor confidence in the company is pretty shaky too, with one of the former dragging it to courts over what he called were false and overly optimistic projections of user growth.
Meanwhile, internal strife at the company continue to hinder the strong and drastic changes that are the need of the hour. Not only are the two Co-Founders, CEO Jack Dorsey and Board Member Ev Williams, completely at odds as to the future of the company as an independent entity, Dorsey was rumored to be in the middle of an authority crisis as well.
Its not as if the company is not trying. Aided by an extremely proactive CFO, Twitter is doing all it can to claw its way back. From NFL live streams to live broadcasts of the US election debates, the company is pushing with all its might. Whether that will be enough to save the company from going the way of the Yahoo, is something only time will tell.