Twitter picks Goldman for sale talks

Company is still attractive because of its data, user base and influence

Twitter Inc is holding informal talks with several potential buyers and is working with Goldman Sachs Group Inc to help with a possible deal, people familiar with the situation said.

Salesforce.com Inc is one of the main parties interested in the San Francisco-based social media company, said the people, who asked not to be named because the information isn’t public. Twitter is also working with Goldman on options besides a full sale, like a divestiture of non-core assets, one of the people said.

Twitter’s stock has fallen after several quarters of slowing growth, putting it in play as a potential takeover target. The company is still attractive because of its data, user base and influence in politics, culture and the media. Twitter recently expanded into live video streaming, making it possible for some users to watch NFL games for free, with Tweets related to the game appearing alongside the video. It’s making similar deals for content related to politics, business and entertainment.

Twitter co-founder and board member Ev Williams fuelled takeover speculation last month when he said in an interview that the company has “to consider the right options.” He was responding to a question on Bloomberg TV about whether Twitter can remain an independent company.

Expressions of interest

Twitter shares surged as much as 23 per cent to $22.89 (Dh84) on Friday after CNBC said the company has received expressions of interest from several technology or media companies and may get a formal bid shortly. The stock closed at $22.62, up 22 per cent.

Salesforce earlier this year unsuccessfully bid to acquire LinkedIn Corp, and Twitter could provide similar benefits. Though Twitter is typically considered a consumer product, the social media company’s 313 million monthly active users include many professionals — people who Salesforce customers already may be targeting for potential deals. It’s data may help improve the Salesforce software that companies use to manage customer relationships.

More than 70 per cent of sales professionals use social selling tools, including LinkedIn, Twitter and Facebook, to help close a deal, build stronger relationships and expand revenue, according to a LinkedIn report. And Salesforce itself in 2014 said Twitter was the “largest cocktail party in the world,” according to a post on its website. Twitter may appreciate merging with a technology company as opposed to a media company, where it may have conflicts over content.