What does it tell us that no company ultimately bid to buy Twitter over the last month despite several reported brand-name interested buyers?
Twitter is the eighth-most-visited Internet site in the world; the best site in the world for real-time content; and is one of the few public companies in the marketplace that is growing revenue at a 20% annual rate – and no one even submitted a low-ball bid for Twitter? What is going on here?
Apparently, it tells us that there are only two companies in the world that could grow, leverage and monetize Twitter to make it worth roughly $20b under current circumstances – Alphabet-Google and Facebook — and they both practically can’t buy Twitter for antitrust reasons.
Let’s analyze why.