Friday , 28 October 2016
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Salesforce Rules Out Twitter Acquisition

Salesforce Chief Executive Marc Benioff on Friday ruled out buying Twitter, leaving the social network with no clear suitors.

The San Francisco enterprise software company had been rumored in recent weeks to be the front-runner to snap up Twitter, with analysts saying that Salesforce could mine Twitter’s trove of user data to benefit its customer relationship management tools.

But Benioff put an end to the speculation, telling the Financial Times: “You’re going to look at price, you’re going to look at culture, you’re going to look at everything. … In this case we’ve walked away. It wasn’t the right fit for us.”

Twitter stock fell 5.12% at close to $16.88 on the news. Salesforce stock rose 5.15% to $74.27.

With other potential acquirers such as Google and Disney bowing out, it is unclear whether the social network is still looking for a buyer.

A spokeswoman for Twitter, Kristin Binns, said the company does not comment on rumor and speculation.

Salesforce said it had nothing to add beyond Benioff’s comments.

After losing out on LinkedIn to Microsoft in June (Microsoft paid $26.2 billion for the professional networking site), analysts and tech insiders believed that Salesforce would pursue Twitter to bolster its cloud computing business and better position itself to compete with Microsoft.

The rumor sent Twitter’s stock up but Salesforce’s stock down, because in addition to inheriting Twitter’s data, an acquisition also meant Salesforce would have to take on Twitter’s problems.

The company was built on the premise of free speech, but it has also earned a reputation for harboring harassment.

Twitter has long struggled with growth. Despite being publicly traded since 2013, it continues to operate at a loss. While its competitor Facebook has seen soaring user numbers every quarter, with approximately 1.71 billion monthly active users, Twitter has seen meager growth, averaging 313 million monthly active users. Even Santa…