Twitter has been getting attention recently for the CEO shakeup and this has prompted much talk about the future of the company. Some have even suggested that the Microsoft Corporation should acquire the company. Twitter is in serious need of a new CEO with Dick Costolo preparing to exit his role and the company will need a worthy person in charge and some good strategizing to remain afloat. Could Microsoft provide the answer that the company is looking for? Should the Microsoft Corporation lend a helping hand and buy Twitter?
Benzinga stated that Google and Facebook are both interested in acquiring the company. Analysts have also reported that Apple Inc. is interested in making an offer as well. The article continued by saying that the expectation is that the Microsoft Corporation will also be making an offer. The article did say that since Twitter is driven by advertising, the odds of Apple following through with an offer were not great considering the fact that the company is not as focused on advertising. Sean Udall, who is a Twitter expert, said that while he feels that Google or Apple would get the most out of Twitter, he feels that the Microsoft Corporation should get in the running as well.
Benzinga said that one of the reasons Udall thinks that purchasing Twitter would be a good idea for Microsoft is that Twitter enhances searches. He said that Twitter has the power to greatly enhance search platform and development. He added that buying Twitter might be a necessary move for the Microsoft Corporation to keep Bing viable and relevant. Some think that purchasing Twitter would not be wise according to the article, but other like Udall think that the Microsoft Corporation should acquire the company. Udall said that he feels that buying Twitter would be a good move for the company not just because of potential competition with Google, but with Apple as well.
The article also said that acquiring Twitter could provide long-term revenue growth. Udall mentioned that this would be a strong move on the part of Microsoft. He also pointed out that the company should be buying big data assets and planning additional security purchases. He thinks that the company should without a doubt buy Twitter but that it should wait until the price is fair and right.
Benzinga did say that Microsoft should acquire Twitter rather than hoarding any additional cash. Udall mentioned that Microsoft has in the past bought the wrong things as well as overpaid for its purchases. He feels that making a deal with Twitter soon would be well-timed and not a huge overpay like deals of the past.
Yahoo Finance pointed out that Microsoft should make this purchase for an idea of what is on the minds of customers and what is popular and trending now. The article added that once the purchase is made, the company should still let Twitter run as it always has. The two can just get ideas from one another and use the merger as a means of growth. The combination of the two could draw additional attention to both and be an extremely wise investment overall. Yahoo Finance did say that there was little chance that Microsoft would have to overpay if it did acquire Twitter.
Should the Microsoft Corporation acquire Twitter? The company has been back and forth on this decision for years according to Tech Week and a final decision has yet to be made. Some feel that purchasing Twitter would be wise while others are skeptical. Acquiring Twitter would provide many benefits for Microsoft according to Udall and time will tell if the company actually makes an official bid or not.
By Heather Granruth
Benzinga: 3 Reasons Microsoft Should Acquire Twitter
Yahoo Finance: Why Microsoft Should Buy Twitter Now
Tech Week: Microsoft Shouldn’t Buy Twitter
Photo Courtesy of Mike Mozart’s Flickr Page- Creative Commons License
Photo Courtesy of Spencer E Holtaway’s Flickr Page- Creative Commons License