Facebook and Google wanted to acquire Twitter, at $10 billion

By on February 10, 2011, 10:24 AM
Both Facebook and Google wanted to acquire Twitter sometime last year and even held talks with the social network. Naturally, all three companies have declined to comment on this news. While acquisition propositions for early successful companies are perfectly normal in the technology industry, it is quite shocking to learn that the service was valued by these and other companies at anywhere between $8 billion and $10 billion. This is all according to sources quoted by The Wall Street Journal:
Executives at both Facebook Inc. and Google Inc., among other companies, have held low-level talks with those at Twitter Inc. in recent months to explore the prospect of an acquisition of the messaging service, according to people familiar with the matter. The talks have so far gone nowhere, these people say. But what's remarkable is the money that people familiar with the matter say frames the discussions with at least some potential suitors: an estimated valuation in the neighborhood of $8 billion to $10 billion. This for a company that, people familiar with the matter said, had 2010 revenue of $45 million—but lost money as it spent on hiring and data centers—and estimates its revenue this year at between $100 million and $110 million.

Less than three months ago, Facebook was valued at $50 billion on SecondMarket. This was pretty unofficial, but last month, the company raised $1.5 billion at a valuation of approximately $50 billion. The fact that Twitter could be purchased at a price of up to one fifth of Facebook is simply mind-blowing.

User Comments: 6

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TomSEA TomSEA, TechSpot Chancellor, said:

I always thought Twitter was going to be a flash in the pan deal. I mean what's the point of another social network app - especially when it's functionality is absolutely bare bones basic. You can only type 168 characters or something like that. On the surface seemed like instant failure.

That is until all the movie stars, professional athletes and media people got a hold of it to self-promote themselves. That's the only people I know using it. :p

emzdhr said:

yeah.. you are absolutely 100percent right..

and I really don't know why is it just 168 characters..!?? why not 200, or maybe a thousand?

anyway.. I could use a 10billion..

Raswan Raswan said:

Definitely, Tom. Not being a user myself, I have the sense that people either simultaneously update their status via twitter and facebook together, or use twitter to follow their favorite celebrities and personalities.

aj_the_kidd said:

I think the simplicity of the twitter is what really won people over, personally i don't understand what all the hypes about, as i am not one of those "people familiar with the matter"

matrix86 matrix86 said:

I agree that facebook is for keeping up with friends and family while twitter is more for keeping up with your favorite celebs. I got a twitter account two years ago...I haven't used it in 1 year and 11 months, lol. Every time I heard something about twitter I'd think "I need to check on my account"...and then I never would. I guess that makes me an ex-twit :P

Guest said:

Facebook is for people you know. Twitter is for people whom you wish you knew. That's the main difference.

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