Some are calling it a rumor. Some say that the news about the acquisition discussions between Google and Twitter is indeed true and confirm that Twitter is up for sale. Some state that the negotiations are into the final discussions stage while others maintain that it is fairly early days yet. As if the suspense was not enough; in an ultimate non-confirming yet non-denying mode, Twitter’s co-Founder Biz Stone shrugs it off with: “Twitter engages in discussions with other companies regularly and on a variety of subjects.”
Twitter’s own recent fund valuation pegged its worth around $250 million. However, it later turned down a $500 million bid by Facebook. So, how much would Google need to shell out in order to acquire Twitter?
What the heck! Why would Google want to buy Twitter at all? Perhaps Google looks at Twitter as a Search Engine and not as a Social Networking site!
Analyze this. People use Twitter primarily to engage in ‘talk’. Some people might talk about brands. Wouldn’t the brands in turn be interested in knowing what’s being discussed? Of course, they would if only to gather information about what they’re doing is right or wrong.
And, all that is talked on Twitter is searchable. At search.twitter.com, Twitter’s very own search engine. Be it the search for news or be it the search for feedback. The stuff that you would find on Twitter is valuable. And so, the more bigger that Twitter becomes, the more valuable will it get.
Google being Google knows only too well that search is vastly monetizable, what with an estimated 40% of its online advertising revenues coming from ads on search listings. So, from Google’s perspective, the earlier it can get hold of Twitter the better for it.
If this deal finally comes through it will be Google’s second picking of the Twitter pie. It’s first was about five years ago in the form of ‘Blogger’ which Twitter had got rid of then.
The deal might not come through quick though. You see, Microsoft might come into all this as a ‘white knight’ if it sees the deal going to Google. And, we all know Microsoft is an emerging player of strength in the future search-stakes.
Clearly, we have not heard the last on the Twitter sale yet!
- myVox