Loomio
October 6th, 2016 00:26

Twitter to Conclude Sales deliberations this Month [News Updates]

Chris Cook
Chris Cook Public Seen by 412

Post links to relevant news articles or updates in the Twitter sale situation in this thread.

http://www.reuters.com/article/us-twitter-m-a-exclusive-idUSKCN1252J0?

Not quite sure what this means....

Suresh Fernando

Suresh Fernando October 6th, 2016 00:56

What it means for us is that Twitter is not an option for us. We need to build capacity to acquire a different asset.

Nathan Schneider

Nathan Schneider October 6th, 2016 02:51

Or: Spurred by the Twitter example, we are motivated to build structures so that next time we're more ready.

Thomas Euler

Thomas Euler October 6th, 2016 10:01

From the article: "It is not certain the process will result in a sale, the Reuters sources cautioned. The sources asked not to be identified because the matter is confidential."

I think there is a decent chance we won't see a sale by then.

Kirsten Lambertsen

Kirsten Lambertsen October 7th, 2016 13:59

I've heard rumors that most/all suitors are losing interest.

Alanna Irving

Alanna Irving October 8th, 2016 04:14

Just updated this thread to be a place to post news articles and ongoing updates on the Twitter sale.

TM

Tom McDonough October 10th, 2016 16:46

TWTR was below 17 this morning. Bounced up to 17.5.
http://www.zerohedge.com/news/2016-10-10/twitter-tanks-deal-dead-cat-bounce-dies

Rebecca Garnett

Rebecca Garnett October 10th, 2016 17:45

This appeared in today's Guardian: http://www.theguardian.com/technology/2016/oct/10/twitter-shares-fall-potential-bidders-lose-interest-report?CMP=Share_iOSApp_Other Clearly the value of Twitter is not the same to investors as it is to users as Nathan pointed out in his article.

Suresh Fernando

Suresh Fernando October 21st, 2016 16:01

Here's a pretty recent article that provides a decent analysis. Basically, what the article says is that, yes, Twitter is losing a lot of money, but the service doesn't do a whole lot so a buyer could come in and restructure and get the financial house in order. Clearly this is what those looking at the deal are trying to figure out...

"But lets play the numbers

Twitter revenue is still rising and is running about $2.5 billion per annum. It is a website that once ran extremely well on less than $250 million in costs. (No I am not joking.)

If you can't make this have a 40 percent operating margin then - frankly you are inadequately brutal. Personally I think 50 percent is possible.

At this market cap that works extremely well for a financial buyer. Its a no-brainer even.

So expect it to be bought. By some Wall Street bastard armed with a lot of debt.

And that bastard will fire a lot of people.

If I worked at Twitter I would be preparing my resume and providing a list of really quick things that can be done to improve the user experience - with the code all mapped out. That largely involves getting rid of spam bots and the like. But unless it radically improves the user experience or monetisation and you can convince the new owners you can implement then you are out.

And the fashion-obsessed philosopher king. He is out too whether there is a buyer or not. That is necessary to save the company."

http://brontecapital.blogspot.ca/2016/10/some-comment-on-twitter-buyout-rumours.html