Will There be a Hostile Takeover of Twitter?

Will There be a Hostile Takeover of Twitter?

Twitter is fast approaching takeover territory.  The stock price ended at $20.26 per share, dropping 5.28% yesterday alone, down from the 52 week high of $53.49. After months of decline, today may see Twitter reaching takeover territory. The $19 price point is one many experts have been looking at.

This has all been caused because Twitter has not been able to attract sufficient numbers of new users, and the failure to grow a user base potentially impacting future revenue. Twitter’s earnings are linked to acquiring new active users, and keeping existing users engaged, because a limited number of users means a limited income.

Experts have also speculated for a while that companies such as  Google, Facebook, or even Yahoo! could attempt a hostile takeover if the stock price fell sufficiently. The takeover price that seems to have some consensus is the $19 per share range, which we could see today. However, don’t expect it to stop there. I projected the stock to hit a $17 low.

Twitter Did This to Themselves

Twitter has made many changes, both to the platform and personnel, in order to fix the problem. There are two issues driving Twitter’s inability to attract users. First is that stockholders are demanding change, but are not social media experts. So, many of them are looking at the most successful social media platform (Facebook) and demanding, “Be like them.”

So,  Dick Costolo, the former CEO of Twitter. and Jack Dorsey the replacement CEO, both have attempted to make Twitter more like Facebook. The problem with that is the same challenge faced by GooglePlus, the world does not need a weak-tea version of Facebook. However, after Costolo left the company, Dorsey doubled down on the idea.

Twitter has added a “While You Were Gone” feature to their newsfeed, replaced the “Fav” button with a “Like.” and created “Moments.” While doing all of this, they have continued their long practice of increasing restrictions on developers, the very developers who helped grow the service. At the end of November, the most visible restriction seen by users was Twitter stopping counts of link shares, an essential tool used for Social Proof.

Twitter Doubles Down on Weak -Tea

This week, Twitter has allowed it to become public they are exploring expanding tweet limits from 140 characters to 10,000 characters. The response from the Twitterverse seemed to be generally negative, with demands the platform make changes users really want, like the ability to edit tweets.

The expansion of tweets to 10,000 characters takes Twitter one step closer to the vision of management and many shareholders, to become more like Facebook. Unfortunately, it takes the platform another step away from its user base. Instead of attempting to make Twitter the best version of itself, they are making it a bad version of Facebook. Who needs that?

It appears that a Twitter takeover will be my first successful prediction of 2016.  Google (aka Alphabet Inc.) remains the most likely. However, there is a list of possibilities. Expect movement soon.

Sort by:   newest | oldest | most voted
kingcool52
Member
kingcool52

I think the problem with Twitter is that they did not focus on advertising too much like Facebook did. They have managed to do it a lot better now but I think they went down the advertising route a bit too late. Facebook were getting ready with different ways to make revenue from the platform for a while which definitely helped them a lot. It’s good to see that Twitter has been doing a lot better since this post was posted though

Timothy Alexander
Guest

Your comment had me thinking. If Twitter made a clear distinction between business accounts and personal accounts, that could have both created more opportunity for ad revenue and may have resolved some of their active user issues.

hazelandrea
Member
hazelandrea

I was wondering why would twitter make their platform similar to Facebook? If they are to make a change I think suggesting new platforms would be best so that they can offer something new to the audience. I also think that them changing their characters from 140 to 10000 is a very drastic move.

wpDiscuz