Shares of popular social media site Twitter (NASDAQ: TWTR) were lower by over 5% Thursday as news came out that the board of directors was meeting to "discuss strategic options", which likely included a possible sale. There has been much speculation during the year that Twitter will be and should be taken over. At each new rumor, the CEO Jack Dorsey was quick to dispel them. After the most recent earnings conference call the comments from Mr. Dorsey seemed to shut the door on a potential sale.
The reason for the public speculation, and analysts push to let twitter be taken over stems from the disappointing user growth, the ever growing popularity of Snapchat (NYSE:SNAP), and the ever present pressure from the likes of Facebook (NYSE: FB)m and Google (NASDAQ: GOOGL).
So who would want Twitter? A few months ago, a popular tech blog reported the potential suitors to include companies in the telecom space, media giants such as News Corp (NASDAQ: NWSA), and possibly even private equity groups that could take it private, re-tool and go public later.
There is a consistent rumor that Google has been mulling the purchase as a way to continue to build its Alphabet spin off. Google has denied such rumors but as of now this seems like the most consistent rumor that may have some legs.
At issue with potential buyers is the price tag. Analysts expect that Twitter would have to for around $18 billion which is an awfully high price for an unprofitable company facing growth issues. In the right hands though there are some attractive qualities to Twitter.
Twitter is very popular with celebrities, public figures and other major influencers. They are also a go-to source for live information as it happens. The company has made major progress to continue to hang on to that cherished quality. And lets not forget the recent content partnerships with TV networks, and the NFL. Twitter has an exclusive deal with the NFL to live stream NFL games on Thursdays. They also have deals to broadcast popular tennis championships like Wimbledon, and some deals with the NBA as well.
There is no telling what was talked about in the meeting of the board today, but it sure seems that we will be talking about Twitter for some time to come.