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Twitter in Nosedive as Potential Buyers Fly the Nest

lpammann on audubondallas.org
Perhaps Twitter should consider rebranding to a more appropriate avian logo given the continued diving of their share price in recent weeks. The Wall Street Journal detailed Twitter's plunge, with the San Francisco-based social network's shares dropping 12% on Monday alone, continuing a 31%, $5 billion plummet since last Thursday, October 6th. Most of this drop stems from investor uncertainty surrounding the viability of a potential upcoming takeover, with previously interested buyers such as Google and Disney reportedly unwilling to follow up initial interest.

Initially, the rumors of budding buyers had generated a buzz amongst investors, with share prices swelling due to speculators salivating over a potential bidding war between some of the heavy hitters. This enthusiasm failed to materialise, however, and looks set not to, except perhaps from cloud computing company Salesforce, who will only remain keen if the price continues to drop, the WSJ stated.

So why the reluctance to bid? Well, Twitter has been struggling in many respects recently. One particular sticking point has been the platform's sluggish user growth, with only 9 million monthly users added compared to 160 million for Facebook over the past 12 months. Revenue has also dropped sharply, particularly due to unhealthy ad sales whilst the app stays locked in battle with the cheaper Snapchat and Instagram.

Twitter has attempted to bounce back from its travails in a variety of ways. One has been to reclassify itself as a news platform, attempting to stand apart from social media-focused rivals such as Facebook and Instagram. The platform has also tried to distinguish itself through other means, live streaming various events such as NFL games, esports, and political news. On top of this, they have been emphasizing the news aspect of the platform through their "What's Happening" ad campaign. The ads have even been rolling out in the New York streets and subways in the past few days, which is very timely indeed considering some of them are right outside Wall Street, in the eyeline of a load of investors.


I hope they're not too concentrated in the subways though, as there won't be too many Wall Street types slumming it down there.

Troubled times indeed for Twitter, and only time will tell if the frantic measures they're taking will be enough to stop them going the way of previous fallen behemoths like Yahoo. The future certainly looks bumpy, especially given the already declining willingness of marketers to spend ad budgets on the platform. RBC's Mike Mahaney conducted a survey in which 30% of marketing professionals replied that they did not allocate any spending budgets for Twitter at all. Twitter's fate seems reliant on whether ad campaigns and live video efforts can reignite user growth rates, or the company may eventually be forced to lower ad prices, which may be too little too late.

Since the prognosis seems bleak right now, I saved Twitter the design budget and whipped up a quick version of a potential new logo, free usage:





With a masters in Literature, Sam inhales books and anything readable, spending his working hours reformulating the info he gathers into digestible articles. When not reading or writing, he likes to put his camera to work around the world, snapping street photography from Stockholm to Tokyo. Too much of this time spent in Japan teaching English has nurtured a weakness for sashimi, Japanese whisky, and robot cafés. Follow him @SamF_Songbird


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Twitter in Nosedive as Potential Buyers Fly the Nest Reviewed by Sam Franklin on Thursday, October 13, 2016 Rating: 5

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