Is Google About To Acquire Twitter?

3rd April 2009

Undisclosed sources have apparently informed TechCrunch that Google is holding negotiations to buy over the popular microblogging site Twitter.

It seems likely that Google would be interested in buying Twitter, as Twitter is a very valuable asset in the emeerging field of real-time search. It can provide a great real-time database of information, as reported by over 7 million potential sources – the current estimated number of Twitter users.

Several users are now making use of Twitter to discuss various issues like brands, customer care, feedback and the news. This database of information can easily be mined to pull current news and can be monetised with ads.

While there is no official word on the price being discussed between the two companies, it is certainly expected to be well over $250 million, which was the figure arrived at during the latest valuation of Twitter.

Twitter had recently turned down an offer of half a billion dollars from Facebook. That amount was to have been paid mainly in Facebook stock, which is not publicly listed, and was deemd to be overvalued. Google, on the other hand, would pay in cash or its publicly listed stock, which is certainly a better option.

Founders, Biz Stone and Evan Williams have also dealt with Google earlier, when they sold Blogger to the search engine.

It is also possible that Google may receive some competition from Microsoft, who may also show an interest in the acquisition.

According to reports from All Things Digital, however, the two companies are merely discussing potential product tie-ups, such as Google building a real-time search engine, and not a possible takeover.

The possibility of a potential acquisition is exciting, but most Twitter users might not be thrilled about Google acquiring the service, especially given Google’s recent spate of failures with services such as Dodgeball and Jaiku.

Tags: blogs, google, mergers-and-acquisitions, search, search-engine-marketing, social media, twitter

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