We're hiring

We love digital - Call
03332 207 677
and say hello - Mon - Fri, 9am - 5pm

Call 03332 207 677

James Perrin

Twitter Sale: Google and Facebook in Takeover Negotiations

10th Feb 2011 Social Media, Facebook, News, Industry News, Social Media, Twitter 2 minutes to read

Google and Facebook have held low level talks with Twitter over a possible sale. The move values the micro-blogging site at around $10 billion (£6.2 billion).

Early suggestions are that little other than the valuation of Twitter has actually been discussed, which is believed to be in the region of $8 – $10 billion according to the Wall Street Journal. That’s more than double the $3.7 billion price tag reported a year ago!

Why the jump in valuation? Well, despite having estimated revenues of $45 million, Twitter actually lost money last year due to the hiring of new data centres. This year they are estimated to more than double their revenue to $100 – 110 million. In the last year or so, valuations have skyrocketed in online properties, not least in the social media market; this has been caused by the eagerness of investors to in the latest internet companies, Twitter being a great example.

Facebook itself is valued at a staggering $50 billion, thanks to a recent round of investment [see: Facebook Overvalued at $50 Billion in Investor Poll | Bloomberg]. With information being power, Google, Facebook and, to a lesser extent, Twitter are in extremely strong positions. This, along with the huge (potential) returns have made them extremely attractive property to investors.

So what do Google or Facebook want with Twitter? Well, 175 million users and 95 million tweets a day…all for the wee sum of around $10 billion. Google and Facebook are no strangers here either; they’ve held talks before about acquiring Twitter, with Facebook offering $500 million back in 2008. Again, a great indication of how the market has soared.

So who needs it more? Well, from a purely functional point of view, you could argue that Google need this more because of their appalling track record with social media. Ever heard of Buzz? If you have the chances are that it’s because you’re working within circles that need to know. Outside the world of the online-savvy, Google’s social record is minimal.

With Facebook becoming the most visited site of 2010 [See: Facebook Overhaul Google as the Most Popular Site of 2010] Google are having to step up their game in what is becoming an incredibly social orientated internet. This would give them some weight with a platform that could well be a fusion of search and social services. Twitter know they offer a service that fits in between Google and Facebook services, and so I’m sure they are happy to ride this out for the time being. With a doubling of their valuation and healthy revenues for next year, they’re in a pretty good negotiating position.

Share this post

What do you think?

  • aspect-ratio site-speed-blog
    Ross Momtahan

    A Guide To Page Speed Metrics

    Site speed is an important area of website optimisation that people working in the world of Search Engine Optimisation are becoming increasingly concerned about.

    With Google’s site speed update being rolled out to all users on July 9th, now is the time to audit your site speed if you haven’t done it for a while. (more…)

    Ross Momtahan
    20th Jul 2018
    SEO
  • aspect-ratio
    Dan Rice

    What Does Content Marketing Mean?

    The term “content marketing” is frequently thrown around by marketers, influencers and business owners, but what does it actually mean? Let’s kick off with a quick definition before we take a closer look at this concept.

    (more…)

    Dan Rice
    @thedangrice
    18th Jul 2018
    Content Marketing

Digital Ideas Monthly

Sign up now and get our free monthly email. It’s filled with our favourite pieces of the news from the industry, SEO, PPC, Social Media and more. And, don’t forget - it’s free, so why haven’t you signed up already?
  • We’ve got some really cool stuff we want to share with you. So you don’t miss out, let us know which of the following you want us to email you about going forward:
  • This field is for validation purposes and should be left unchanged.