Thanks to the fallout from the Facebook IPO, it’s starting to feel like Google is going to finally acquire Twitter in the next many months.First there was our report from last week how Google’s M&A team seriously regrets not buying Twitter “when it could.”
For the same report, a source close to Twitter told us: “It still can.”
So, OK: there’s interest on both sides.
That’s 99% of the battle: the last 1% is price.
Well, thanks to Facebook, Twitter is getting cheaper.
The performance of Facebook’s stock after its IPO has made it clear that the public markets do not value social media services with tons of users and little revenues as highly as private investors have till now.
Three final points:
- It’s becoming obvious that Twitter’s business model will be ads in users Twitter streams, targeted through contextual matching – something that Google is better at than anybody.
- Twitter cofounder and executive chairman Jack Dorsey is spending less time at the company again, prefering to work on his other company, Square. That leaves a professional, non-founding CEO Dick Costolo in charge – one who has already sold a company to Google once in his career. Why wouldn’t he do it again?
- Google organizes the Web for desktops, through pull. Twitter organizes the Web for mobile, through push. The Internet will be mostly mobile by the end of the decade.