Twitter has told suitors it is seeking to conclude negotiations about selling itself by the time it reports third-quarter earnings on October 27th , according to Reuters. Twitter shares sank nine per cent after Google parent Alaphabet was reported by Recode to have ruled out a bid. Recode also says Apple is not in the running.
It is a clear sign that Chief Executive Jack Dorsey is pushing to provide clarity to shareholders and employees over the company’s future as quickly as possible. Binding acquisition offers are due in the next two weeks, and Twitter has already whittled down the field of potential acquirers, with Salesforce.com Inc is in the running and Walt Disney Co. Recode reported on Wednesday, citing sources it did not identify, that Google would not move forward with a bid to acquire Twitter.
It is not certain the process will result in a sale, Reuters sources cautioned.
Twitter has struggled to generate revenue growth and profit, despite having some 313 million average monthly active users and a growing presence as a source of news. The company missed Wall Street’s sales expectations in both the first and second quarters of 2016, according to Thomson Reuters StarMine, and has yet to produce a net profit in 11 quarters as a public company.
It has also failed to keep pace with rivals, notably Facebook Inc’s Instagram and Snapchat.
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