Salesforce CEO Mark Benioff said that the company revoked the effort to acquire Twitter and this time the cancellation is real. He said that Twitter is not the right fit for Salesforce and the decision is not good for business.
Benioff made this clear that he stopped all efforts to purchase the microblogging company as reported by Bloomberg. The cancellation was mainly because the poor combination of Salesforce business and Twitter business.
He said that he was pressured by the shareholders to make a bit on Twitter, but he decided to stop pursuing Twitter after comparing the Salesforce.com business and Twitter's. Prior to its withdrawal, Salesforce looked like the only serious bidder for Twitter.
Salesforce.com's decision followed the decision from the Alphabet Inc.'s Google and Walt Disney Co., to back out from the deal. Twitter is still observing the list of suitors which have earlier expressed interest to make an offer.
"In this case we've walked away. It wasn't the right fit for us," Benioff told the FT as quoted by Tech Crunch. "If you were looking for an official confirmation, it can't get more official than that."
When Google and Walt Disney decided not to place bid, Salesforce.com holds the upper hand to negotiate a better price. But that is not the issue, because restated his decision during an investor meeting about how combination between Twitter and Salesforce are not a right fit.
Following the decision, Twitter's share slump 8.5 percent to $16.28, while Salesforce shares also dropped 6 percent to $74.91.
Twitter has been looking for buyers after its sales and user growth are slowdown. The company hired Goldman Sachs Group Inc. and Allen & Co. in September this year to manage the sale. However Twitter CEO Jack Dorsey and co-founder Ev Williams have different opinion about the sale. Dorsey opposed the sales, while Williams support it.
Watch Jim Cramer's interview with Benioff regarding Twitter's canceled acquisition at the talkshow "Mad Money" on the CNBC:
