Twitter Considering Buyout

- By Julie Young

Google (GOOGL), Salesforce.com (CRM) and Disney (DIS) are potential bidders for Twitter (TWTR). The social media company has reportedly begun searching for bidders after revenue has been trending lower, specifically from lower ad revenue. Analysts are also skeptical of the company's attempt to rebrand with new broadcasting efforts targeting sports organizations such as the NFL.


In Twitter's most recent quarter, the company reported total revenue of $601.958 million. Revenue gained 20% from the comparable quarter with advertising services up 18% and data licensing and other up 35%.

Second quarter GAAP earnings reported a net loss in the second quarter of $107 million with earnings per share of -15 cents.

Non-GAAP net income was $93 million and non-GAAP diluted earnings per share were 13 cents.

Given increased merger and acquisition activity in the media technology sector, it seems Twitter could be interested in partnering with a larger conglomerate to help generate more revenue and support slowing earnings growth.

A CNBC report on Monday provided additional insight on the company's potential sale.

Disclosure: I do not own any stocks included in this article.

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