Microsoft To Buy Micro-Blogging Site, Twitter

Microsoft CEO Satya Nadella shared his company's future proposition of incorporating artificial intelligence in its products and services. His energy was quite evident on the stage at Atlanta on Monday.

Nadella brought forward various plans such as facial recognition for Uber drivers and augmented reality for Lowe's customers that would ensure marital happiness during the home renovation process. But even the news of Microsoft collaborating with Adobe for its Azure cloud, a customer coup, could not interest the netizens as much as the CNBC report. According to the report, Microsoft and Disney are battling it out to acquire Twitter.

Twitter, the 10-year-old social media giant, has been struggling to carve a niche for itself on the internet just like Facebook and Instagram that have taken the social media industry by storm. Amidst the repeated losses faced by the organization, an array of bidders is now believed to be interested in acquiring the company.

According to an article by The Telegraph, on Friday, Twitter shares hiked by 21 percent, their highest level on record this year. They climbed another 3 percent on Monday, with its market value surpassing $20bn (£15.5bn) for the first time this year. This led to many potential bidders coming forward to lay hands over the multi-billionaire firm. Candidates for the bid other than Microsoft and Disney are Google, Salesforce and Verizon while Apple is occasionally mentioned as a buyer.

Microsoft has chosen not to comment on any of the proceedings towards this deal, but its decision to put up a bid for Twitter is being considered foolish. Just three months ago, Microsoft acquired LinkedIn for $26.2 billion in cash which is by far the largest acquisition for the Seattle-based giant. It seemed logical to take over LinkedIn in order to integrate the professional network into its business-minded products range.

Advantages of Twitter's incorporation into Microsoft seem difficult to understand at the present moment. It is a consumer-oriented business whose community and data are less relevant to Microsoft. It's quite perplexing to know that Microsoft may actually pay $20 billion for something whose relevance to their business is not even clear.

Disney's decision of being a part of the bid is all the more surprising, since the reasons for a business dealing in creating content coming forward to buy a social platform are beyond understanding. Microsoft's efforts these days are directed towards its enterprise business which makes the acquisition of Twitter unlikely. But as it goes for all publicly traded companies, it can always happen, provided the time and price are right.