Google + Twitter | Does this Deal Works Out?
Reports (rumors) are that Google may acquire Twitter. The news comes from two separate and unnamed sources that claim talks between Google and Twitter are in the late stages, according to TechCrunch's Michael Arrington. However, Arrington says he has spoken to a third source that says talks are just in the early stages. Arrington says his third source claims the talks may only result in the two companies collaborating on a real-time search engine for Google. There's no word on how much a Google-Twitter deal could be worth, but most estimates put it in the $1 billion range with Google paying a mix of cash and stock.
This latest rumor comes only a few weeks after Google CEO Erich Schmidt called Twitter a "poor man's e-mail system" at the Morgan Stanley Technology Conference in San Francisco. During the conference, Schmidt said Google would wait for "prices to get better" before attempting any acquisitions. However, it was clear from his talk that Schmidt and Google had been putting a lot of thought into Twitter's future. Schmidt's Twitter musings included incorporating the service into traditional e-mail and for Twitter to evolve beyond what Schmidt called a "note phenomenon."
Twitter turned down an offer to be bought by Facebook just a few months ago for half a billion dollars, although that was based partially on overvalued Facebook stock. Google would be paying in cash and/or publicly valued stock, which is equivalent to cash. So whatever the final acquisition value might be, it can’t be compared apples-to-apples with the Facebook deal.
If this is accurate, it’s a brilliant deal for Google - the value of Twitter is only going to go up over time. And it will be Twitter founders Evan Williams and Biz Stone’s second sale to Google - they sold Blogger to them just five years ago. But there’s one big question - where’s Microsoft in all this? Letting Twitter go to Google only hurts them, badly, in the long term search game. This is an asset they need to be competing for aggressively.
Website : www.twitter.com
Service : Micro-Blogging
Available Language(s) : English, Japanese
Location : South Park, San Francisco, California
Founded : March 2006
Twitter is social networking and micro-blogging site that allows users to post their latest updates. An update is limited by 140 characters and can be posted through three methods: web form, text message, or instant message.The service was started by Obvious Corp, and had launched the Japanese version in April 2008.
Website : www.google.com
Location : Mountain View, California, United States
Founded : January 1, 1998
Google primarily provides search and advertising services, which together aim to organize and monetize the world’s information. In addition to its dominant search engine, it offers a plethora of tools and platforms including its more popular products: Gmail, Maps and YouTube. Most of its Web-based products are free because Google makes its money from highly integrated online advertising through its AdWords and AdSense platforms. Google promotes the idea that advertising should be highly targeted and relevant to users thus providing them with a rich source of information.
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