Google to buy Twitter?
By Davey Winder in Editorial
Posted in Business, Blog, Google, Internet on
Although there has been plenty of blogosphere gossip regarding the monetisation of Twitter, the hugely popular social networking in 140 characters service, not a great deal of sense has been spoken. Until now. It would appear that an acquisition of Twitter by no less than Google is on the cards. Now that is an exit strategy guaranteed to get the dollar signs flashing. How many dollars? “Well north of the $250 million valuation” that Twitter saw in recent funding according to TechCrunch which broke the story.
Although that story has now been updated from reporting that Google was in “late stage negotiations” to now saying “early stage negotiations” which some people might argue suggests it is just more idle gossip, I am not so sure.
After all, Twitter founders Evan Williams and Biz Stone have done the Google sales deal before. Those with good memories will recall that prior to bringing us Twitter, this clever tech business twosome sold Blogger to Google a few years ago.
TechCrunch says that it has sourced the details from “two separate people” who are both “close to the negotiations” although it obviously does not name them, nor any actual dollar value. That said, considering Twitter has recently turned down a reported offer of half a billion bucks from Facebook recently you can expect it to be at least that much, if not a tad more. Or can you? Maybe not, when you take into account that Facebook was offering a part stock deal and many people consider that the Facebook stock is somewhat overvalued. Nobody can argue about the value of Google stock, however, as it is in the public domain. Which means that a Google ‘part cash and part stock’ deal could be less on paper but actually worth more in real terms than the Facebook half a billion.
Why is Google trying to get into the social networking business again, having already pretty much failed with everything it has tried so far? Anyone remember, let alone even have used, Orkut or Lively for example?
The answer, I suspect, is that Google is not after the social networking per se but rather is looking deeper into the core market that has served it so well: search. Yes, that’s right, search. Twitter understands the importance of this, which is why it has already acquired and started rolling out a real time search function. This ability to search for trends in what people are actually talking about, right here and right now, will become ever increasingly important to brands and advertisers alike. It is where the Twitter money is most likely to come from, instead of ‘premium accounts’ and the like. Google understands this as well, and wants a bit of this real time trending action.
Rated: 100% (2 votes)
Loading ...Comment by - April 3, 2009 on 9:42 am
For me, it’s simple: if Google don’t get their collective heads around social media and social networking soon, they’re going to suffer very measurable losses:
“Instead of ‘Googling’ for something, we find stuff being sent to us as emails from friends, in our profiles, in a friends’ lists of favourites, or any number of user-generated websites, ‘blogs, RSS feeds, Social Networks and Social Media portals.
While we’re busying ourselves voting and commenting on this stuff, we’re not using Google’s search algorithm, and we’re not clicking on Sponsored Links, either.”
That was a predictive observation of mine way back in 2007, and since then? As far Google are concerned, indecision has been final.
Comment by - April 3, 2009 on 10:39 am
Yep, you are not wrong! (happygeek on Twitter)
Comment by - April 6, 2009 on 5:54 pm
Haven’t google been tiptoeing around buying twitter for some time? I’m sure i’ve read about this before. I think if google wants, google normally gets!
Comment by - April 20, 2009 on 3:53 am
What’s your take on a Google deal in the next 3-6 months? I feel that they need to get in now before Twitter actually explodes. Even though we have seen it with tremendous growth, we haven’t seen anything yet.
Comment by - April 25, 2009 on 8:57 pm
Why does everyone believe that ? I love the concept of twitter and I think its a brilliant idea but how big can such a simple function get ?
Even with P.diddy shouting his twitter on almost every show he goes on , I haven’t found it to be as amauzing. Its true I don’t have a huge amount of friends on twitter but even with the small amount I do have I can’t seem to find it in my schedule to ever revisit the site. Someone please clue me in , maybe someone who has already made the switch.
I believe the recent changes facebook has made virtually made the use of twitter not as interesting anymore.
Comment by - May 15, 2009 on 7:07 am
Google + real time search = ???
It should be awesome.
Comment by - May 28, 2009 on 10:22 pm
I think its a great idea 
why not buy twitter now and upscale it w/ technology
Comment by - May 30, 2009 on 1:20 pm
Don think this will happen afterall Google Wave is getting developed and will guess it will wrpa all whats those sites offer into one
Comment by - June 29, 2009 on 5:32 pm
Can’t see this happening now unless Google put in a huge offer, Twitter have been getting so much press lately!
Pingback by - July 29, 2009 on 3:38 am
[…] since January, when it caught fire on Google Trends, or April, when there were rumors of interest from Google, Microsoft or even Apple. That growing popularity since January? That’s demand. As it grows, […]
Pingback by - August 29, 2009 on 10:50 am
[…] IT PRO: Blogs: Davey Winder: Google to buy Twitter? www.itpro.co.uk/blogs/daveyw/2009/04/03/google-to-buy-twitter – view page – cached , Although there has been plenty of blogosphere gossip regarding the monetisation of Twitter, the hugely popular social networking in 140 characters service, not — From the page […]
Comment by - September 21, 2009 on 1:46 am
Well,i think you have taken hard but very true decision.I understand the problems regarding copyright as you mentioned in the article.
Pingback by - November 20, 2009 on 1:02 pm
[…] idea that we can give away this real-time feed of data to other companies like Google and Bing, in order for them to create a better experience for searching Twitter,” the co-founder […]
Pingback by - November 22, 2009 on 1:06 am
[…] idea that we can give away this real-time feed of data to other companies like Google and Bing, in order for them to create a better experience for searching Twitter,” the co-founder […]
Pingback by - February 1, 2010 on 5:50 pm
[…] since January, when it caught fire on Google Trends, or April, when there were rumors of interest from Google, Microsoft or even Apple. That growing popularity since January? That’s demand. As it grows, […]
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