Posted By RichC on January 22, 2016
I’ll admit, I’m not an expert when it comes to social networks or even using the many developed and developing services available. I do occasionally stay in touch with close friends and family on Facebook and monitor the news and events on Twitter, but that really takes up enough of my time … I don’t need many more. What I have difficulty in understanding is how what is seen by me as a heavily used social network by most media outlets (that being Twitter) is suffering when it comes to growing numbers. It seems to me, that every celebrity, news person and network has the little bird @ sign handle and is using it on a regular basis. What an advertising opportunity … wouldn’t you think?
Twitter’s challenges are plenty. Its user base is dwindling and there is no immediate solution in sight. Twitter has a user base of just 320 million. To put it in context, Instagram boasts 400 million users, while Whatsapp has a user base of 900 million. Even Facebook’s Messenger recently got past the 800 million users mark. At over 1.55 billion users, Facebook remains the largest social media service.
Twitter ($TWTR) stock as suffered significantly in the past year and there hasn’t been much CEO Jack Dorsey has been able to do to stop the fall. About the only promising news for shareholders is that since the price is below $20 share price, buyers might start looking at it again (tweeted that myself even). This week the latest rumor was that News Corp ($NWSA) might be interested.
… speculations that micro blogging site Twitter, Inc. TWTR could be a potential takeover target for News Corporation NWSA. Though News Corporation issued a statement declining any such development, Twitter shares benefitted greatly. Shares moved up 13–14% when the rumour broke out, but lost a bit after News Corp’s official denial, to finally close at $17.38, or a 4% gain.
Unfortunately for shareholders seeing the only hope for $TWTR is a buyer … these rumor were quickly squelched by a News Corp spokesperson. Who knows, I still wouldn’t be surprised to see a deep pocketed media outlet or acquisition
On Wednesday, rumors that News Corp was interested in scooping up the embattled social media site sent Twitter’s stock soaring as high as 12%. These gains fell down to the 4% range after a News Corp spokesperson told Re/Code bluntly, “The rumor’s untrue.”