Twitter suffers another setback as Salesforce pulls out of deal
Social network website Twitter faced another setback on Friday as Cloud software major Salesforce announced that the company isn’t interested in buying out Twitter. Earlier, Google and Disney announced that they don’t have any interest in buying out troubled social network Twitter. Twitter is facing tough times as the user growth has stagnated.
Twitter has reported loss for the last 11 quarters and the management has failed to turn the company into profit. Adding to their woes, the traffic on social network has stagnated, leading to speculations that the social network would soon lose its appeal among investors.
Investors are worried about the company failing to meet Wall Street expectations in its upcoming quarterly results announcement on October 27. For the last two quarters, Twitter failed to meet expectations of street and major brokerages have downgraded the stock.
Twitter has also faced massive loss in its market valuation. Twitter stock declined 5 percent on Friday after Salesforce announced that the company is walking away from the deal. Salesforce stock jumped by 5 percent on Friday as investors weren’t happy about Salesforce acquiring Twitter.
Twitter CEO Jack Dorsey will have tough task to revive the business. Dorsey returned as Twitter CEO last year after the company faced management crisis. Twitter will have to rethink about its business model and how it can make money. Twitter’s ability to make money has been questioned by investors since inception.
With the latest blow, Twitter would need some more time to find a suitable buyer. Also, the company would need to showcase a better business model as investors still feel the company as overvalued. Twitter is currently valued at $12 billion.