According to reports, a sale of Twitter Inc (NYSE:TWTR) is now very unlikely to happen, with multiple bidders quitting their pursuit of the embattled social media giant.
Twitter once saw interest from Alphabet Inc.’s Google, Salesforce.com Inc. and Walt Disney Co., all of which consulted with banks on whether to acquire the social-media company. Now all of those suitors are unlikely to make a bid, according to people familiar with the matter. On Friday, Twitter had planned to have a board meeting with outside advisers on a sale but canceled, one of the people said.
There’s always a chance that another potential bidder will step up into the mix, but so many interested parties dropping out of the race in so short a time isn’t a good sign. If it’s unable to find a suitor, the company’s fate will instead likely rest in its ability to attract new users by offering live video and other features:
If a buyer doesn’t appear, Twitter will to try to appeal to more users through a new strategy that emphasizes live video. The company has been entering partnerships for sports, politics and entertainment content — such as the National Football League’s Thursday night games — that it can stream alongside tweets related to the video. It may give people without Twitter accounts a new way to use the service, while allowing the company to share revenue on the video ads.
Twitter’s user growth has ground to a halt in recent years, as its limited features have made the service attractive only to its core audience.
Twitter shares closed at $19.85 on Friday, down $0.02 (-0.10%). Year-to-date, TWTR has fallen 14.22%, and is now more than 52% off its IPO day closing price of $41.65.