A flurry of investor attention hit Twitter over the past few months, due to the poor first quarter earnings. Speculation on who will replace current CEO Dick Costolo continues to be a major talking point, alongside potential suitors for Twitter.
An early investor in Twitter, Chris Sacca, has written a long overview on the future of Twitter and what needs to happen. Sacca spoke on how Twitter needs to become a more friendly social network, add new channels and focus on live content like Periscope.
Sacca also said Twitter should be bought by one of the three big players in tech. The first company on the list is Google, a “perfect fit” for the search giant.
“I think it's a fantastic use of Google's cash. From the Google side, it's an instant fit. This is the thing Google has never had,” Sacca said on CNBC. “They've never understood social, they have never understood those personal interactions. This bolts right in cleanly.”
Google has enough money to acquire Twitter in its current form, but previous attempts made by Google have been declined. Twitter even hired Goldman Sachs to block any bids from Google and one other company, which has remained nameless.
Sacca claims if Google is not up for acquiring Twitter, either Microsoft or Facebook should look at the company. Facebook is a bit of a weird choice, considering the crossover and potential cannibalism of the main Facebook News Feed.
Microsoft, however, is in a similar situation to Google. It has been unable to craft an interesting social service for users. Apple would be another suggestion, especially with its war chest totalling £130 billion, although Sacca did not mention Cupertino.
Even though the reaction to Google buying Twitter might be negative at first, the amount of additional functionality and server support from Google could push Twitter out of its current rut.
Google is also excellent when it comes to advertising, something Twitter has not be able to perfect. Twitter still lacks the profit to interest short term buyers, with plenty of investors rating it as quite a low stock for 1-3 year investment.