Google and Facebook target Twitter

Google and Facebook target Twitter

Is Twitter for sale or not? The tech bubble keeps building. So far we have seen AOL's acquisition of the Huffington Post for $315 million. Did that deal make sense? Who knows but one thing for sure: Arianna Huffington who doesn't pay most of her writers has taken the money and run.

And we're likely to see more acquisitions. After the Huffington Post, the biggest deal would be Twitter.

The Wall Street Journal reports that Facebook and Google are holding preliminary talks with Twitter and are exploring some sort of acquisition. The extraordinary part here is the revelation that they have valued Twitter at an eye-popping $10 billion. That's almost an obscene amount for a company that's losing money and has next to no business model.

Up until now, the company's chief executive and co-founder Evan Williams has said that Twitter is not for sale at any price. Still, it is losing money and getting into bed with Google or Facebook would extend its influence beyond its network.

Henry Blodget at the Business Insider thinks Google is more likely to pick it up, if only because it would give Google a presence in social media. "If Twitter would actually sell for $10 billion, Google should just step up and buy it. The company would barely miss the cash, and Twitter would actually put it on the map in social media. We actually don't think a Twitter-Facebook deal is even plausible at this point. We think there would be a protracted anti-trust investigation prodded along by Microsoft and Google, and we don't think Facebook could come up with enough cash to make the deal work. We also think that, if Facebook were to get close to buying Twitter, Google would pay whatever it took to steal Twitter away."

But would it work? The cultures of any of these three companies are very different. Potentially, that's a prescription of disaster. We could be seeing a replay of the tech bubble madness. Greed does that to people.


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