Rumors on Friday pegged Salesforce ($CRM) as a Twitter ($TWTR) suitor. Forgetting the math and the fact that Twitter TV/Media is a direction that does not seem to fit with Salesforce…why?
Salesforce mission (on their homepage) is to help companies find, win and keep customers.
Twitter is an incredible lead generation engine and marketing tool but is listed as a ‘news’ app in the app store.
Twitter has an incredibly powerful interest graph. For instance, they know exactly what interests me in the moment. I share it.
Salesforce would have to believe they could monetize all the interest graphs much better than Twitter.
I have watched Salesforce closely over the years. Benioff is very bold with acquisitions.
In April 2007, I was super bullish on the company and trend and we made this Wallstrip (still makes me laugh):
The stock has been a favorite of shortsellers the whole way up to $50 billion.
In the last year alone they have made $2.5 billion worth of acquisitions (Demandware and Quip).
Twitter at $15 to $30 billion though is a whole different level for sure.
Friday was a mess for the stock. It was down more than 5 percent. The stock is now down 20 percent from all-time highs. That does not scare Benioff who has seen his stock fall 40 plus percent many times.
The real question is…was Salesforce stock down so much Friday because Wall Street hates the idea of them buying Twitter or down so much because Wall Street knows Benioff can’t get Twitter and senses it needs to own Twitter and their interest graph.
Also published on Medium.