Twitter, Facing Challenges, May Soon Be for Sale
Twitter is having a bit of an identity crisis. It has manifested itself in little ways, like the recent reclassification of Twitter's iOS app from "social networking" to "news." Ahead of this week's board meeting, though, it could be going deeper: the entire company could soon be up for sale, Recode reports.
Citing sources within the company, Recode recounted rumors of layoffs and restructuring -- including the possible spin offs of units like Vine -- that could make the company more attractive to potential buyers. The board meets Thursday, when it is expected to "consider the right options" when it comes to its future as an independent company, according to co-founder and board member Evan Williams.
In addition to considering decisions that will change the foundation of the company, Twitter also has to grapple with stagnant user growth and engagement. A significant portion of Twitter accounts, as high as 44 percent according to one third-party estimate, appear to be abandoned without sending a single tweet.
Twitter doesn't disclose how many active accounts it has, but Bloomberg in June estimated that it has fewer than 140 million daily active users. That's fewer than the 150 million people who use Snapchat every day, and far less than Facebook's 1.13 billion daily active users.
So who might want to buy Twitter? If it emerges from its identity crisis as the news organization it appears to want to be, potential acquirers would likely include other media companies. Recode identified Rupert Murdoch's News Corp. as one potential contender. A Google acquisition is also a possibility -- both Murdoch and Google have been rumored to be interested in the company since at least 2009.
A Twitter spokesperson did not immediatley respond to a request for comment on whether its board is considering a sale.