Salesforce Abandons Twitter Bid (Report)

Salesforce is not going to acquire Twitter, after all: The cloud business services company has nixed plans to bid for Twitter, according to a Financial Times report. The paper quotes Salesforce CEO Marc Benioff saying that Twitter was not the right fit for his company. “We’ve walked away,” said Benioff.

Salesforce was among a number of possible suitors ever since news broke last month that Twitter’s board was considering to sell the company. Other names floated in the media included Disney and Google, but both companies have since signaled that they’re not interested in an acquisition.

This left Salesforce as the last possible candidate known to the public, and reports suggested that Benioff was personally making the case for an acquisition. However, he faced significant headwinds from Salesforce investors, including large funds like Fidelity, which holds 14 percent of his company.

Salesforce was looking at a possible acquisition of Twitter after it lost a bidding war for Linkedin against Microsoft, which acquired the career-focused social networking site for $26 billion in June.

The news of Salesforce not making a move is bad news for Twitter investors who had hoped to make a quick buck on the sale of the company: Twitter shares had gained some 47 percent since news of a possible acquisition first broke in September. Much of that gain already evaporated over the last week as an acquisition started to look increasingly unlikely.

Twitter stock took another nosedive Friday on the news, falling close to 7 percent, with shares trading as low as $16.44, only to recover slightly soon after.

With Salesforce out of the picture, Twitter is likely going to abandon its exploration of a sale. This could be a boon to CEO Jack Dorsey, who had reportedly pushed to stay independent. But it also raises expectations for the company’s performance. Twitter has been putting a huge emphasis on live video, striking deals with the NFL and others to carry live streams of high-profile events. Investors will look for any signals that this strategy is working when the company reports its Q3 earnings at the end of the month.

Popular on Variety

More Digital

  • Disney Plus Technical Issues

    Disney Plus Users Complain of Login Problems, Service Errors on Launch Day

    Disney Plus opened its doors Tuesday — but some fans immediately encountered problems trying to access the streaming service. Multiple users on social media said they had trouble signing in to Disney Plus when it first went live, while others said they had problems accessing specific content or using features (like setting up a watch [...]

  • Disney Plus Launches; Two Episodes of

    Two Episodes of 'The Mandalorian,' Other Originals to Drop This Week as Disney Plus Goes Live

    New episodes of Disney Plus original series dropped Tuesday as the streaming service went live in three countries, with second installments of “Star Wars” spinoff “The Mandalorian” and other shows set to become available just a few days later. Disney’s new direct-to-consumer service launched Tuesday in the U.S., Canada and the Netherlands, with company chief [...]

  • Instagram Reels

    Instagram Starts Testing New Stories Format Dubbed 'Reels' in Brazil

    First there was Vine, then Tiktok… and now Instagram Reels? In an attempt to stay relevant with music-loving video makers, Instagram started to test a new Stories format by that name in Brazil Tuesday. Reels, in essence, are a collection of creation tools that include the ability to add music to a video, as well [...]

  • Blockchain Mania

    AFM: Panel to Launch Blockchain Working Group for the Film Industry

    A group of film executives and tech industry entrepreneurs are to establish a working group seeking to plan how blockchain technology should be applied to the creative industries. The call will be made at the American Film Market on Tuesday in Santa Monica by Manuel Badel from Badel Media and Patrice Poujol from The Lumiere [...]

  • Magic Leap Raising Another Funding Round

    Magic Leap Is Raising Another Big Funding Round

    Augmented reality startup Magic Leap is raising even more money. The company is currently in the process of raising its Series E round of funding, a spokesperson told Variety on Monday. Magic Leap previously raised around $2.6 billion, including $280 million from NTT Docomo in April. “Magic Leap is in the midst of a significant [...]

  • hearst logo

    Hearst Magazines Unionizes With Writers Guild of America East

    The Writers Guild of America East has scored a major victory by unionizing Hearst Magazines’ editorial, video, design, photo and social staff across 24 digital and print brands. The New York-based WGA East, which has about 6,000 members in film, television, news and digital media, announced on Monday that a strong majority of the 500-member [...]

  • Apple AR Headset Coming in 2022:

    Apple Said to Prep AR Headset for 2022

    Apple’s augmented reality (AR) headset won’t be arriving on store shelves until at least 2022, according to a new The Information report. The iPhone maker reportedly updated a large number of employees about the project last month, filling the spacious Steve Jobs Theater on its Cupertino, Calif. campus with employees working on AR hardware. Apple [...]

More From Our Brands

Access exclusive content