Breaking News + Stories
7th October 2016
Twitter has lost almost a fifth of its stock value as shares in the social network nose dived yesterday after reports emerged that potential buyers for the micro-blogging site had cooled off.
In September news of the possible sale of Twitter emerged as the social media network continued to struggle with user growth and turning a profit. When confirmation of the sell-off rumours developed, Alphabet Inc. – Google’s parent company was reported to be a potential suitor and helped Twitter stock rise steadily over the last few weeks.
Speculation over Twitter’s acquisition was derailed when technology news website Re/code claimed that Google and Disney had not put in an offer bid. Apple also declined to save the one-time darling of social networks. This resulted in a fire-sale of Twitter (TWTR) stock, which has added insult to injury for Twitter’s prospects of a premium valuation takeover.
The future of Twitter
What does this mean for marketers and brands that have invested in Twitter? It really is too soon to tell. A potential buyer like Salesforce, which has not yet ruled themselves out of the buy out, could evolve Twitter into a customer service focused platform and leverage Twitter’s user data to enhance their existing customer-relationship management solutions.
We are fans of Twitter here at MR + MRS, and have advocated the effectiveness of the channel to clients looking to engage their audiences and streamline the customer service experience. However, Twitter has struggled to keep their own users engaged on the platform as other services challenge its main selling point – live, real-time coverage and storytelling. Facebook was once Twitter’s only main competitor for social media user attention. How times have changed. Facebook has maintained its mission to ‘connect and share with people in your life’ by evolving its offering and even acquiring rivals like Instagram and WhatsApp to grow to 1.71 billion monthly active users.
Twitter on the other hand has stalled at 310 million monthly active users. Since Twitter’s initial public offering in 2013, a series of management crises, product delays and a confused business model have complicated the company’s effort to win over the world’s mobile users. A feat Snapchat can successfully lay claim to.
Even minor innovations like the launch of Twitter Media Studio in August, which aimed to simplify the sharing of videos, GIFs, and images – have not seemed to have made an impact.
There is no doubt that both Facebook and Twitter have changed the way people communicate in the 21st Century, but as Tweets begin to be overwhelmed by snaps, stories and message apps, a new direction under new management maybe the only pill that can alleviate this little blue bird’s woes.