W/C: 12th September - New/Digital Media homework (2)

Twitter: 140 characters in search of a buyer

https://www.theguardian.com/technology/2016/sep/10/twitter-140-characters-in-search-of-a-buyer-takeover-facebook-google-microsoft

In Summary, Twitter is looking to sell but are at a lose end as there are not any bids for the company on the table as yet. Twitter, seems to be financially struggling and due to no bids on the table they are considering cost cutting in multiple areas of the business. The look into cost cuts comes as share prices were not as expected in recent passing months. It is assumed that it is unlikely to go out of business with a $3.6bn cash pile but doesn't appear to have much time left as a separate entity in the eyes of the law. Since, Twitter went public in November 2013 it has never made a profit instead it has been steadily declining.Michael Pachter of Wedbush Securities has said that Twitter need to figure out who they want to be and sell themselves based on that. However, at the moment there only appears to be one logically buyer and that is Facebook. Twitter is all about instant news which is the one element of the mix that Facebook does not have and are not very good at given there response on the posting of the Vietnam war photo.

Statistical Information 

•  Value of Twitter stock pushed down by 6%, given that no bids on table
• Shares changing hands on Friday 9th September at $18, 20% down this year. That is short of their float price of $26 three years ago
• Twitter does however boast 313 million monthly active users of which 66 million are US based
•  Twitter went public in November 2013
• Twitter signed up in 2015 to use Google Double Click service giving them the firehose of every tweet as it happens.

My opinion

In my opinion if Twitter is to sell then I do not think that they should sell to Facebook as there overall ethos could be lost in the realm of Facebook. Facebook is more about meeting people and reconnecting with friends. Whereas Twitter is all about reporting and spreading the news as well as sharing your opinion. But given Facebook's response to the Vietnam war photo I think that it would block a lot of opinionated posted and drive users away.