There are many reasons suggesting why Amazon should buy twitter. Recently, twitter is still regarded the best platform for real-time search (which is why a lot of Google searches now show tweets). President Trump’s decision of using twitter as his regular social media platform has also raised relevance for the company. Trump’s tweets has stocked political tensions, created drama with other nations and thereby pulling so many eyeballs to the twitter site and app regularly.
On the other hand, capacity has been found in Amazon to make this giant step. The multi dimensioned company had just recorded $15.4 billion in cash at the end of June while the takeout price for would be around $16 billion. As inclusive options for Amazon, it could offer stock plus cash. Or it could just borrow the funds outright, as it did when it bought Whole Foods for just under $14 billion in June.
Let’s however explore five reasons why Amazon should buy Twitter.
Amazon has a growing advertising business, and Twitter is an advertising company, perfect match! Twitter hasn’t figured out direct-response advertising the way Google and Facebook have, but matching Amazon’s purchase and search data with Twitter’s data around people’s interests is a premium idea. It could provide an immediate (though relatively small) boost if Amazon decided it wants to actually compete with Facebook and Google for marketing dollars, and Twitter’s real-time search data could prove valuable. Amazon is competing just fine on its own: eMarketer projects that Amazon’s U.S. digital ad revenue will surpass Twitter’s this year, but adding Twitter would give Amazon much more data on mobile users.
Twitter could come in handy for Amazon is better reach towards customer relationship. Amazon is online shopping, but doesn’t offer much in connecting people to businesses as compared to Facebook who are trying to do so with help of Messenger and WhatsApp. So, buying Twitter would immediately give Amazon another messaging option — and one that many people already use to try and get attention from brands and businesses. Think of this, if Amazon could sell you a new computer set, and automatically connect you with the seller via Twitter Direct Message for installation or any troubleshooting, receipts or even exchanges, that would go a long in raising customer confidence and besides, Twitter already offers some business features for customer-service purposes although it has really underachieved there. Teaming with Amazon could bring it to lime light.
After personally purchasing the Washington Post for $250 million back in 2013, willingness is really anticipated from him- Amazon CEO, Jeff Bezos to pay for Twitter. He may believe Twitter’s social and cultural value is worth preserving — plus, Bezos actually tweets. Potential bonus: The Post was not profitable when Bezos bought it, but it turned a profit in 2016. Without the pressure that comes from a publicly traded stock, Bezos could likely do the same for Twitter.
Twitter pushes to maintain its status in distributing real-time news and information and one way it aims to achieve that is to be the best online destination for live video. The problem is that Twitter doesn’t have very good live video content. Amazon, on the other hand, has some amazing content, including original TV shows and NFL football, but a smaller overall reach, given that it has about 85 million Prime members. Twitter, which had 328 million monthly active users as of June, could offer Amazon additional reach for its content, especially for mobile viewers, and offer a built-in social experience for some of Amazon’s best shows. Plus, putting some Amazon videos on Twitter might help draw people in who aren’t yet Amazon Prime subscribers.
Amazon can be patient
Some believe that, more than anything, Twitter would benefit from some air cover while it gets things figured out. Imagine if Twitter didn’t need to report earnings every three months, and if the service was instead measured by its ability to influence the real world and disseminate information. Putting the company under Amazon’s umbrella would give Bezos time to figure out the best way to value Twitter without watching its business get ripped by the media and Wall Street every three months.