Before the weekend, it came to be known that one of the last companies that were supposed to be buying Twitter, Salesforce, is not buying it. In fact, instead of buying Twitter, Salesforce recently bought Krux, a data management company it has already been partnering with for quite some time now. Salesforce has bought Krux for $700 million. So why did Salesforce buy Krux and not Twitter?
It would have been a very expensive deal, to begin with, according to this analysis. The acquisition of Twitter, though, would have given massive amounts of analytics data to Salesforce that it could have shared with its own customers, by the end of the day, Salesforce didn’t have a clear idea of what it would do with Twitter? The shareholders had threatened to sell their shares if Salesforce went ahead with the deal and bought Twitter. Eventually, all the rumours were put to end and the Salesforce CEO, in an interview to Financial Times, announced that Salesforce won’t be buying Twitter.
The basic reason why Salesforce bought Krux but not Twitter is that it knew what to do with Krux but didn’t know what it would do with Twitter. As already mentioned above, Krux and Salesforce have already been working together for many years.
Buying Twitter would have been very costly for Salesforce. Although Twitter’s value has drastically come down, still, Salesforce would have had to spend around $12 billion to acquire Twitter. Spending all that money wouldn’t have made any sense.