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According to sources within Google, the Web search giant is very close to acquire Twitter, the micro-blogging firm. TechCrunch reported that Google is already in advanced negotiations with Twitter management to buy the firm. It cited two separate sources when reporting that the transaction may happen and the site’s editor Michael Arrington said he expects Twitter to be sold for the sum of $250 million.
However, later, the influential technology blog TechCrunch cited a third source according to which the talks were actually in their incipient stages and not advanced.
As for how much the transaction will cost Google, last year, the founders of Twitter (Biz Stone, Evan Williams and Jack Dorsey) turned down an offer from Facebook which offered a rumored $500 million in stock for the micro-blogging firm. However, the Facebook offer wias highly over evaluated.
Twitter recorded a massive growth in 2008 with the traffic on its site going up 974%. It became a powerful tool to report news with the speed of lightning, to keep in touch with fans for those who have such as thing, with customers or voters, as a replacement to RSS feeds and so on. Twitter is a platform and an aggregator of content at the same time and that’s what gives it such a tremendous value, especially in Google’s eyes.
Buying Twitter is a move that certainly makes sense for Google considering the fact that one of Twitter’s strongest features is the ability to provide real-time feed of the topics that are interesting its users. Twitter has a key real time database and search engine on the Web and its value will only go up from now on, so Google would really make a good deal by acquiring the micro-blogging firm.
“We’ve been arguing for some time that Twitter’s real value is in search,” said TechCrunch’s Michael Arrington. “It holds the keys to the best real time database and search engine on the Internet, and Google doesn’t even have a horse in the game.”
However, if the two companies are really talking about an acquisition, the price will most likely be higher than $250 million. Twitter should and probably will play hard to get, and Google will have to play the game. Nevertheless, Twitter may not want to sell yet. Although it witnessed a huge growth over the past year, the site it’s just starting to hit the mainstream and what today looks like a massive growth, tomorrow may look less impressive.
According to TechoCrunch, Google and Twitter may also find a solution to work together on a real-time search engine, a move that would be better for Twitter. If the deal would be reached and the transaction finalized, it would be the second time Evan Williams and Biz Stone had sold a company to Google after selling Blogger in 2003.
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