Salesforce has revealed it won’t be putting a bid in to buy Twitter, with the company’s CEO Marc Benioff describing the company as “an unpolished jewel. ”
Although Benioff had previously expressed an interest in buying Twitter, it would seem the social network is not as attractive as it first seemed for the CRM company.
“In this case, we’ve walked away. It wasn’t the right fit for us,” Benioff told the Financial Times after considering its options. “It’s not the right fit for us for many different reasons. You’re going to look at price, you’re going to look at culture, you’re going to look at everything.”
He added that the data Twitter presented to Salesforce’s staff wasn’t enough to convince him the technology company should buy it. “I want to have a look at everything, conceptualise, be free to think creatively,” he said.
As a result of this news, the value of Twitter’s shares declined by 5% at the end of last week, leaving it in a vulnerable position.
Salesforce was the strongest contender for buying the social network after Walt Disney and Google’s parent company said they would be stepping away from the acquisition opportunity last week.
Twitter said its advisors are still looking for potential investors to snap it up.
07/10/2016: Twitter’s shares drop after Google and Disney ‘opt out from buying it’
Twitter is apparently for sale, but it now appears that two of its biggest potential buyers aren’t interested in making an offer.
The three most likely contenders for the acquisition of the micro-blogging site were said to be Salesforce, Google and Disney.
Sources told Recode that tech giant Google no longer intends to buy Twitter, while other sources said Disney is also opting out of the acquisition.
As a result of this, on Thursday Twitter’s shares fell by 19% to $20.10, according to Bloomberg .
Apple was rumoured not to be interested in making an offer at all.
This would leave CRM giant Salesforce and tech firm Microsoft as the only potential bidders left in the equation for now.
Salesforce never confirmed publically that it would make a bid to buy Twitter, though on Wednesday, Salesforce CEO Marc Benioff told CNBC : “It’s an exciting product, but obviously the business has a lot of challenges, very severe challenges. ”
Twitter has millions of active users worldwide and has become one of the top social networking sites after it was first established in 2006.
Before Recode published the report stating that Google and Disney might opt out from its acquisition, its share price had closed at $24.87 on Wednesday, up by 5.74%.
Twitter appears to want to end negotiations with potential bidders on 27 October, according to Reuters , after it reports its third-quarter earnings. This would only leave a few weeks before its conclusive prospective buyers are defined.
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