In what it may sound to be one of the biggest news in online world, the online micro-blogging website Twitter has initiated talks with several technology companies to explore selling itself to other bigger names in the industry.
The company, which currently has a market value of around $16 billion, is Internally holding debates to sell off the entire business to bigger rivals in order to prevent itself from getting wiped from the picture.
Let's talk about more of the prominent but money-losing social media company.
What reports say?
The micro-blogging site has been a topic of sell-off for many months and as per reports, the company is dealing with stagnant user growth, soft advertising sales and losses running at hundreds of millions of dollars a year.
Twitter now boasts over 302 million users, with revenue figures crossing $436 million, but still below the $440 million forecast. So, a net profitable loss.
The Potential buyers
As per a report, Twitter is in talks with companies including Google and may receive a formal bid soon. Verizon and Salesforce.com are also in pursuit to buy the online giant. These companies can utilize the data generated from over 300 million active users of the micro-blogging site.
What went wrong?
It's not like Twitter is not innovating, the things are just not going right for the micro-blogging site. It introduced new features like Twitter Highlights, a new homepage, stepped into video world with Vine, Periscope, etc. but at the same time is considered a niche social media site that might never manage to gain the user base matching the likes of Facebook, Instagram and Snapchat.
Besides, abusive users on the platform have remained to be the biggest pain for the company's credibility.
The expected market value
As per sources, Twitter could be bought for $22 per share. The micro-blogging website is working with investment banks Goldman Sachs and Allen & Co in considering possible transactions.