Published: 17/10/2016 – www.stockmarketdaily.co – Follow us on Twitter: @SMDailyco
Love story of Twitter and Salesforce ended in bitter taste, why?
Twitter share tumbled on Friday 14th Oct 2016 as Salesforce chief executive Marc Benioff said “His firm would not bid for the social media website”.
While, Salesforce were the lead runner for buying Twitter. Where does that leave Twitter?
For Twitter, it’s back to drawing board. Twitter CEO Jack Dorsey can now refocus his attention on other strategies for expansion and how to earn money from it’s 300 million users.
Google, Apple, and Walt Disney also rejected bidding, which did not help Twitter Shares as it dropped 7% on Friday to $16.60.
Twitter has taken a major ups and down in last one month. Last month Twitter’s shares were up by 20% after a report said it had received takeover approaches.
Twitter has suffered because its user figures have plateaued at about 300 million and it has not “been able to figure out a way to make money on those 300 million people, so they’ve had lots of swings at it and it hasn’t worked,” Douglas McIntyre, from 24/7 Wall Street in New York, said.
Let’s not forget, Salesforce signed an agreement to buy Krux for $700 million earlier this month. That deal not only ate a lot of cash but may have made Twitter redundant. Krux is a data-management platform with more than 3 million personalised profiles. Krux is a long-term partner to Salesforce already, so the two companies are well-integrated.