Twitter Sale Process Said To Be "Almost Dead"

Tyler Durden's picture

For Twitter shareholders it may be easy come, easier go.

After TWTR's stock soared during the past two weeks on news reports the company had hired Goldman to find a willing suitor, with substantial preliminary interest from a group of potential buyers including Google, Salesforce and Disney despite some stern warnings from the sellside, especially Citigroup, that a sale may be problematic at best, and fetch a far lower price than many had expected, last week Twitter shares tumbled after several reports that some of the more prominent buyers, such as Google and Disney, had gotten cold feet about the process and had backed out, but at least Salesforce still tentatively remain part of the process.

Twitter’s search for buyers began after several quarters in which sales growth and user growth slowed. The company received interest from one potential buyer, which led the board to hire Goldman Sachs Group Inc. and Allen & Co. to pursue a sale in September. CEO Jack Dorsey opposed a sale, while Williams, favored a deal, according to Bloomberg.

Now, according to a new report from Bloomberg, not only is Salesforce also out, but the Twitter sales process is all but dead "as top bidders lose interest amid pressure from their investors, according to people familiar with the matter."

Citing "people", Bloomberg reports that neither Google, nor Disney or Salesforce are likely to make a bid. On Friday. As confirmation that the process was unwinding, Bloomberg notes that "Twitter had planned to have a board meeting with outside advisers on a sale but canceled, one of the people said."

Why the dramatic shift in sentiment?

"At Salesforce’s investor conference this past week, several investors talked to Chief Financial Officer Mark Hawkins and other executives about how they weren’t pleased with the idea of a Twitter buyout, according to another person familiar with the matter. They made their feelings known during small huddles near the stage and other areas around the meeting room. High-profile investors also e-mailed Hawkins, who forwarded the messages to his CEO and the board."

As Citi and others explained in their warnings that the sale process would end in tears, buying Twitter would come with a series of complications. Beside the growth issue, the company has grappled with hate speech and harassment on its platform known for 140-character messages. A buyer would have to address heavy employee stock grants, while dealing with a workforce that has already faced a lot of turnover in its leadership.

What options are left for the suddenly unloved social platform?  Among the far less palatable solutions for both the company and its shareholders, are divestitures of assets not central to its business, "people familiar with the matter have said." More from Bloomberg:

If a buyer doesn’t appear, Twitter will continue 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.

So far Twitter's attempts to aggressively grow the business have failed, while complaints from its existing user base to cater to their far more modest demands, remain unheard which is why while Twitter will likely persist as one of the best platforms for news dissemination, its stock price may continue to suffer until it drops low enough that a buyer is ultimately interested. However, it will not be at Twitter's Friday closing price of $19.85, which ultimately is good news for Deutsche Bank because no matter what happens to the German lender, it is unlikely that its market cap will be again eclipsed by that of Twitter.

 

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Golden Phoenix's picture

Not a single comment yet. This highlights Twitter's problem. No one even cares enough about it to complain.

DarthVaderMentor's picture

There are comments. The autocratic censor driven CEO is keeping them off the system. That may prove to be one of the major causes of the failure of the IPO.

eatthebanksters's picture

Nthing would make me happier than to see this garbage business that promotes progressive hypocrisy fail and go up in flames.  Everyone who has been part of this anti first ammendment, censoring, liberal propaganda machine, deserves to lose all the fucking money they invested to remind them that if you lie you lose.  Burn baby burn!!

Buckaroo Banzai's picture

Jack Dorsey's a pole-smoker. Fags have a 100% success rate in running tech companies into the ground (I'm looking at you, Tim Cook).

RAT005's picture

Twat is Twitter?  I've never used it.

Bad Attitude's picture

Gee, who would have guessed that going full SJW is bad for business. Even if alienating a substantial portion of your customer base is the "progressive" thing to do, it is bad for business.

Forward (over the cliff)!

Loftie's picture
Loftie (not verified) Bad Attitude Oct 8, 2016 10:30 PM

They thought they could do like these people who've been alienating a whole region and get away with it. http://wp.me/p4OZ4v-Dg

Larry Dallas's picture

Then women (Yahoo), followed by blacks...

Bilderberg Member's picture

C'mon! Use the hashtag

#almostdead

Nekoti's picture

Good, kill that f@cking bird.

johngaltfla's picture

But, but, but, you can get pet food delivered to your home.

Whooops, wrong .bomb stock, my bad!

Wulfkind's picture

Remember when the Unicorn hunters all came in with their preferred shares and blew up the IPO.

The first to fistfuck the unicorn gets all the money. Now they don't won't ANYTHING to do with this carcass.

Twitter.....Silicon Valley's Pet Rock. "Next money making trend please so we can pump and dump"

Wulfkind's picture

I thought Donald Trump was going to make America Great Again?

He can't even save Twitter with all his constant tweeting ! LOL !!!!

debtor of last resort's picture

After the inauguration of your godess, Twatter 'll save ya

Wulfkind's picture

Ohhh......poor little public school educated snowflake.  Didn't they teach you in your Government school that one can be opposed to something and not support the other ?

No....of course not. 

Trump is a fool, a trog and a Real Estate Scam Artist.  Everyone should have known BEFORE 2005-2010 that just about everybody involved in real estate is a scam artist.  And Trump's grandfather who came over from Germany and started the Trump Empire was one as well.  The taverns and hotel he ran out west also has whorehouses in them.  And Trump's daddy was indeed a racist and a slum lord. 

The apple doesn't fall from the tree.

And now Little Lord Fontleroy Trump being born into the Purple can't even keep anything running for long.  He has to constantly shift debt around ( I thought you Zero-losers HATED debt ) and uses bankruptcy laws to play a sophisticated 3 card Monty so his tax losses can help him keep whatever new scam running until it goes belly up.  He's a huckster, a Trademark seller ( Trump's own name is the Trademark ).  He's says he LOOOVES DEBT....and then bitches about the nations debt.

He can't even keep a promise to a woman.  Several.  If a man will lie to his wife and fuck around on her.....he'll lie and fuck around on the American Sheeple.

I hate Trump because it is a reflection of the quality and character of the American Sheeple.  Look at our candidates.

 

(1) A Real Estate Scam Artist and serial Lech

(2) A Bull Dyke, Shag Gagging, War Mongering Bitch

(3) A completely idiotic and uninformed Libertarian who doesn't even know what the fuck Aleppo is.

(4) A Marxist, Green Party, Tree Hugging Hippie Chick

 

Really.....this is the best we can do folks.....to quote George Carlin.

 

So fuck off Debtor.  You go ahead and vote for Trump.  Just don't let me catch you bitching about Hitlery for the next 8 years on this site.

 

 

DarthVaderMentor's picture

Businesses that depend on Twitter (a bad business model) should start planning on a cessation of Twitter service at any time and must have contingency business continuity plans without Twitter. 

The politics of the autocratic CEO doing political censoring and a meek BoD may prove to be major contributing factors to the company's demise.

0b1knob's picture

"Businesses that depend on Twitter"

Huh?  Name one such business/

Arnold's picture

MSM.

Modern Journalism for ya....

 

Cautiously Pessimistic's picture

Our Federal Gubmit needs to step in and prop this thing up.  If not, the Kardashians are done for.  Please, won't someone think of the Kardashians!?!?

wethecom's picture

i bid $5 but i want 10 years of tech suporrt if i take it over

Joebloinvestor's picture

The banks should all chip in and buy it as they use it to trade on inside information anyway.

conspicio's picture

BUT BUT BUT, the mouth breathing navel gazers who write bullshit for a living said twitter was ready for billyuns and billyuns of valuation...

http://www.businessinsider.com/what-is-twitter-worth-2013-11

I have a file of similar unicorn articles from the late 90 and early 00s for boo.com, flooz (Fuck you Whoopi Goldberg), DEN.com, the OLD webvan (since resurrected), infospace and that goat fucker Naveen Jain, etc.

Same Shit, Different Day. Next in line!

all-priced-in's picture

They need a cute sock puppet - or maybe pay to have a professional sports team stadium named Twitter Park.

 

If these things fail then do a few Super Bowl commercials - just make sure you have one with dogs and women with big tits - otherwise it is just a waste of money.

 

 

 

 

 

 

 

brada1013567's picture

I found a dime on the sidewalk today, I think that should be enough for me to acquire Twitter.

Pumpkin's picture

I have a Canadian Nickel, and a rat's ass.  Never mind, I'll keep what I got. 

brada1013567's picture

"Twitter has considered other solutions, such as divestitures of assets not central to its business, people familiar with the matter have said."

What business there is no business.

Douchebank should buy them.

I am a Man I am Forty's picture

Prediction: Somebody will want those eyeballs.  Watch and learn folks.

King Tut's picture

That would be great but how do you monetize it? I have never seen an ad on TWTR

dust to dust's picture

Nothing better to do than to Tweet you Twits. Take a hike.

delacroix's picture

they should change their name to taint.

the.ghost.of.22wmr's picture
the.ghost.of.22wmr (not verified) Oct 8, 2016 9:22 PM

The farce is strong with this one too!

RU4Au's picture

Maybe Musk should buy it. Would look nice sitting on a shelf with Solar City.

None of the three portend profits without gubmint support.

BarkingCat's picture

I hear AOL is really interested in a merger.

The Navigator's picture

What a bunch of twits

Twitter and FaceFuck will be 6 feet under in 2 years. Spies for Alphabet soup agencies.

Like BarkingCat said above, AOL should buy it.

Good Riddance.

TerraHertz's picture

I suppose the NSA figured out that during WWIII, Twitter will not be providing much in the way of Russian battle plans, and so are terminating their bulk data feed contract.

Anyway, hurry up and die please. I'm sick of watching a few people I otherwise admire, wasting their time and damaging their dignity by trying to cram intelligence into 140 characters. While somehow ignoring that images may be included too, thus demonstrating the text size limit is artificial, and so MUST have the sole intent of conditioning people to trivialization of thought.

East Indian's picture

"conditioning people to trivialization of thought."

 

the next one will allow only emojis to express your thoughts! 

Infield_Fly's picture
Infield_Fly (not verified) Oct 9, 2016 9:30 AM

Acquisition setups are done quietly and in the background.

 

Twitter puts their shit on display - why??? 

 

Step 1:

 Insiders get in low

 

Step 2:

 

MSM pump and all the lemming bid this dead horse - heard of MYSPACE?

 

Step 3: 

 

Insiders dump and lemmings are holding the bag - once again

 

Step 4:

 

Insiders get short and crush the lemmings - again