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Salesforce and Google eyeing Twitter acquisition

26 September 2016

Twitter's sales have been slowing this year, and in the ten years that it has been in existence the company has never made a profit.

According to CNBC, the social company is in talks with the likes of Google and cloud computing company Salesforce, among others, and may receive a formal bid soon.

News of the potential buyout sent shares in Twitter soaring by as much as 20 per cent as investors clearly see this as the best way for the company to escape its current woes.

TechCrunch's sources say Microsoft's interest may be merely a ploy to drive up the value to price out Salesforce.com. The would-be buyers are said to be as interested in Twitter's data as they are in its status as a media company.

Google and Microsoft have struggled to compete in the social media space.

Twitter, Salesforce and Alphabcould not be reached immediately for comment.

US-listed Twitter shares were up 3.38 United States dollars at 21.95 United States dollars per share.

Twitter has added 9 million monthly users, 1 million of those in the United States, since co-founder Jack Dorsey was brought back in July 2015 as chief executive to save the almost decade-old company, reports The Wall Street Journal.

Like Facebook, Twitter is moving into the live video space hoping that that will lure ad dollars.

It added three million users, just 1% up on the first quarter.

In addition to not being able to generate any new ideas that will further the company, Twitter has also failed its advertisers.

Poor performance even prompted co-founder Jack Dorsey to return to the helm as chief executive back in 2015. Once the company has been acquired Twitter will likely see a fair amount of growth.

Before today the company's shares had fallen by 30% in the past year as the social network has struggled to attract new users, while newer social apps have eaten into its screentime.