Twitter suffers from another huge blow. Salesforce CEO Marc Benioff has just confirmed a news that Twitter has probably dreaded. The cloud computing company is no longer interested in buying the social networking service. The impact is evident as Twitter's stock went down again on Friday.
Salesforce And Twitter Are Not The Right Fit
Benioff recently talked to the Financial Times. He revealed that they have indeed walked away from acquiring Twitter. Benioff added that Salesforce and Twitter are not just the right fit. He also cited other reasons like the price and the culture of the company.
The Financial Times further reports that sources from Twitter say the buy-out process is definitely dead. A Salesforce spokesperson has confirmed Benioff's latest comment. On the other hand, Twitter is yet to release an official statement.
According to the Business Insider, Twitter's stock is down 6.3 percent on Friday. As for Salesforce, its share rose by 5 percent.
What's Next For Twitter?
Twitter is set to end any sale discussions at the end of October, according to Reuters. This will coincide with the release of the company's earnings. The deadline is already coming its way for Twitter. Despite this, close sources disclosed that it is still hopeful of new bidders.
Another source revealed that Twitter may now focus on strategic investments. This is in case a buyout is not going to take place.
Is Twitter Too Expensive?
At this point, Twitter is becoming less and less profitable. It is already known that the tech company has lost $521 million last year. Interested buyers would have found its $12 billion value too expensive.
Twitter has been dealing with a lot of issues. Will Oremus pointed it out by enumerating such problems that include user harassment, management upheaval, flattening revenue and little user growth. It only paints a bad light on Twitter.
Bloomberg previously reported that Twitter's fate may now depend on the success of its new live video strategy.
