Google To Buy Twitter?
Jacksonville - Recently, there have been rumors flying around that the successful search engine giant, Google, is talking about purchasing Twitter. Twitter is a free messaging website that enables users to send brief text messages to their social network. It is based out of San Francisco, CA and its popularity has been greatly increasing since it was developed in 2006. Its popularity has drastically increased within the last few months with currently 7 million users.
Two unidentified sources have stated that Google and Twitter have been talking about an agreement and it is progressing into the later stages. An additional unidentified third source says the two companies are only in the initial stages. The third source states that the companies may only reach an agreement where they both work together to create a search engine for Google that is real-time.
Many people thought that Google was not planning to buy Twitter because at the Morgan Stanley Technology Conference that took place in San Francisco, Erich Schmidt, the CEO of Google, referred to Twitter as a subordinate email system. Schmift stated that Google was waiting for prices to improve before starting a purchase process. However, the conversation revealed that Google and Schmidt had been thinking a great deal about the future of Twitter.
Many speculators feel that the agreement makes a lot of sense since Twitter can improve Google’s search engine. Some think that Twitter poses a threat to Google, since Twitter’s Search does a great job of logging users’ real-time information. Twitter provides the best real-time database and search on the Internet.
The deal could provide great benefit to both companies and users that use the services on a daily basis. Twitter could help give better search results and help with Google’s social networking site that is progressing slower than its competitors. Twitter would set up connections between Google users. With Google’s massive computing power, it could improve Twitter’s communication and provide better advertising through its advertising programs. It can also help monetize the Twitter’s traffic.
There is no definite amount on what the deal is worth, but many people speculate that it is way over $250 million and may be within the $1 billion dollar range with Google purchasing with a combination of stock and cash.
Biz Stone, the co-founder of Twitter announced in March that Twitter was excited to partner with other companies such as Google, but was not interested in a buyout or merger. However, the talk of Google purchasing Twitter is not too far off base, along with Evan Williams, Biz Stone previously sold Blogger, a blogging service, to Google five years ago.
There has been other talk of agreements with other companies such as Facebook that reportedly made a serious offer to Twitter in the end of 2008, at which Twitter turned down. Rupert Murdoch, media mogul, has also been rumored to initiating a deal with Twitter.
A spokesperson for Google said no comment to the rumors and a spokesperson for Twitter was not available to be immediately contacted.
