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The Twitter Acquisition Conundrum and What It Means for Marketing

October 11th, 2016 by | No Comments

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Over the past few weeks, rumors have been circling that Twitter is a likely buy-out target. However, the likelihood of a bidding war fizzled out last week, after Disney, Apple, and Google were ruled out as potential buyers—causing Twitter’s share price to drop by 20 percent.

This leaves Salesforce as the most likely buyer, although it’s also possible that Twitter will remain unsold. If an acquisition deal does occur, the future of the microblogging network could be very different than what it currently faces as an independent platform.

Here are three possible scenarios and each’s effect on marketers:
 

Business as usual

For an acquisition to materialize, a buyer would have to pay a premium on Twitter’s current valuation, which stood at about $12 billion in the wake of the company’s acquisition-rumor sparked share price rally last week. If a buyer pays that much for Twitter, it will require a long-term commitment, making it highly unlikely for the social network to cease offering its independent service. This is good news for marketers whose campaigns are heavily reliant on Twitter, although this still won’t guarantee that the site will stay relevant over the long haul.
 

The end of Twitter’s identity crisis

One of Twitter’s biggest and most enduring problems is its lack of a clear identity. Last year, the company named co-founder Jack Dorsey as its CEO. Since then the site has introduced new products such as Moments and live sports streaming, but many are still unsure of what Twitter really is.

An acquisition deal could pave the way to finally solving the company’s identity crisis. For instance, if Salesforce was to buy out Twitter, one could expect to see a stronger focus on how the company can maximize its utility as a sales and marketing platform. And while it’s likely that any buyer won’t enforce a drastic overhaul lest it alienates Twitter’s current network of users and customers, a more definitive focus could surely benefit the marketing industry.
 

Rise of new Twitter integrations

If a tech company acquires Twitter, users can expect to see new integrations. For instance, the social media marketing platform Radian6 and social media engagement plaform Buddy Media, which have been acquired by Salesforce for $326 million and $689 million respectively, would likely merge Twitter with its relevant products.

Such integrations could be immensely helpful to marketers, but it’s also possible that the buyer would eventually change or shut down relationships with existing vendors—an outcome that is likely to create major hurdles.
 
 

About the author:
Jehan S. Ismael is a full-time writer and editor for a leading Internet Marketing firm. She has a love-hate relationship with food, likes to listen to rock and rap music, and enjoys reading books by self-absorbed writers like J.D. Salinger and Anthony Bourdain.


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