Social Media and Social Networking

Get Social!

Google Interested to Acquire Twitter

Posted by Vaibhav Kalamdani on April 4, 2009

google-twitterUntil few years back, getting into the social networking business might have been easy. But today, with the likes of Facebook, MySpace, Orkut, Friendster, etc. it is extremely difficult to start one right from scratch. Probably, this is one of the reasons why search leader Google is eyeing Twitter, a rapidly growing micro-blogging and social networking site.

According to reports, acquiring Twitter will strengthen Google’s ability to expand its advertising and social networking platform. The buyout deal, which will include millions of dollars, will help Google add another business vertical that will cater to the social networking needs of its users, and assist advertisers to better their reach.

Reportedly, Twitter turned down Facebook’s offer worth half a billion dollar, which was made up of Facebook’s stock in November last year. On the other hand, as per a recent valuation, Google’s offer pegged at $250-million-plus that included cash/public stock according to rumors.

While turning down Facebook’s proposal, Twitter co-founder Biz Stone said that the company was keen to remain independent, allowing it to explore the possible ways to build a functioning revenue model. Earning revenues is still a problem for many social networks including Facebook, even though several small businesses are reaping benefits from Twitter.

Google’s Acquisition Drive:

While dominating the search engine market, Google seems to be slowly getting hold of the social media market as well. It already has some big social media brands under its belt, such as video-sharing site YouTube, social networking site Orkut, and photo-sharing site Picasa.

Google’s arch-rival Yahoo is also keen in establishing a strong presence in the social networking space, while software giant Microsoft already has a stake in Facebook. The overall competition is getting intense day by day, and it wouldn’t be incorrect to say that only the fittest would be able to survive in this industry in the long run.

Twitter is a fast-growing service, especially in the European countries. Acquiring it would allow Google to pace up its initiative in competing against other brands globally.

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