Salesforce Acquiring Twitter is the Perfect Response to the Microsoft-Linkedin Deal
Yesterday, some reports surfaced the news that Salesforce.com was exploring an option to acquire Twitter. There are many perspectives that can be used to analyze a potential deal between the two tech giants. At first glance, it seems that an acquisition of Twitter could be the perfect response to the Microsoft-LinkedIn deal.
It is not secret that Salesforce was very competitive trying to acquire Linkedin and placed several bids before finally loosing to Microsoft. By acquiring Twitter, Salesforce can take a second, and somewhat different, approach to merge a rich social media ecosystem into its current platform. In some aspects, Twitter could be a more natural complement to Salesforce’s current product portfolio than LinkedIn.
A potential acquisition of Twitter won’t come without headaches for Salesforce. In the eyes of the public markets, Twitter has struggled to produce significant user growth and the stock has lost a considerable amount of its value. However, I believe the potential deals has many positive elements.
Five Reasons Why Salesforce Acquiring Twitter is a Good Idea
Is All About Data
Twitter’s rich data sources could represent a gold mine for various Salesforce products. With Salesforce’s recent investments on artificial intelligence(AI), we can see Twitter becoming a powerful source of data insights for several products in the Salesforce platform.
Natural Complement for Salesforce Marketing Cloud
Salesforce Marketing Cloud seems to be immediate beneficiary on a potential acquisition of Twitter. By integrating Twitter with the platform, Salesforce marketing cloud can better identify prospects, leads and can do a more effective job enabling content and inbound marketing strategies.
In Periscope, Twitter has one of the most valued assets in terms of real time video streaming. Video is a relatively unexplored area for Salesforce and Periscope’s technology can be a great way to bridge that gap.
Both Twitter and Salesforce have been active acquirers in the AI space. Combining the data intelligence capabilities of Salesforce with Twitter’s machine learning efforts in areas such as content delivery and advertisement can create one of the most sophisticated AI stacks in the market.
New Revenue Channels
By acquiring Twitter, Salesforce will be exposed to revenue channels in the consumer market that have been untapped by the enterprise software giant. Twitter’s revenue is still impressive and the social vendor has been able to ink strong content and advertisement deals with household names like the NFL.
Other Suitors for Twitter?
The might be other companies that could be interested on competing with Salesforce for the Twitter deal. Verizon is always an intriguing option after acquiring Yahoo. In the tech space, there aren’t many companies with the balance sheet and the appetite to acquire Twitter but Google could be an option. Private equity firms could also be interested on taking Twitter private via an acquisition.