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Monday, January 26, 2009

Acquisition Dance Between Facebook And Twitter Over For Now?

There has been local (national) talk about the future of Jaiku which is more conversational than Twitter. Jaiku was acquired by Google but not much has happened since the acquisition. Today I learned through TechCrunch that Facebook is looking towards Twitter. It's seems the value of Twitter has gone up remarkably in the recent months. The future revenue potential is in advertising. We should hear more about it soon.

Acquisition Dance Between Facebook And Twitter Over For Now?: "It’s not the first time we’ve heard rumors about Facebook looking to acquire Twitter or about an impending deal breaking down. But this time, Kara Swisher over at BoomTown offers a bit of insight about the actual deal size. According to Kara (and her sources), Facebook was offering $500 million of its stock at the infamous (and ridiculous) $15 billion valuation to acquire Twitter up until 3 weeks ago.

Update: while Twitter CEO Evan Williams declined to comment on the rumors, we’re hearing that 20 percent of the offer that was made was in fact cash (which would mean $100 million in cash and $400 million in stock).

Apparently talks, which were reportedly initiated by privately-held Facebook, broke down because of doubts on behalf of Twitter investors and executives about the stock’s actual worth, the usual concerns that arise when acquisitions are made (like integration, duration, costs, etc.), and a strong belief that Twitter will ultimately be able to weather the economic downturn on its own. Also noted is Facebook’s concern over Twitter’s current burn rate and future revenue potential."

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