A rumor is just a rumor…until its not exactly denied. While Twitter is vehemently denying an acquisition by Google, according to TheNextWeb, Twitter is keeping mum about any talks with Facebook. A quick look at Twitter’s valuation compared to their actual revenue – $3.7 billion versus $45 million – means Twitter could very well be looking to sell.
And a blatant lack of denial means they probably are. So why Facebook? Right now, Twitter has a very small user base with even less active users. Only 8% of Americans use Twitter, and only half of these users tweet once per day. When compared to the fact that nearly half – if not more, now – of all Americans use Facebook, Twitter may have realized they’re playing a losing game. But Twitter hasn’t lost entirely, and their options to concede are limited. The divide between the social network winners and losers is wide, and with that limits the potential to truly cash in. Other networks such as Yammer don’t have the cash flow to provide an appropriate offer, and an integration by a content network such as AOL would be too far of a stretch (and not to mention too much work for which they definitely don’t have the resources.) An acquisition of Twitter by Facebook will be most reasonable – and not mention the most lucrative.
So what happens if Facebook takes over Twitter? It will be interesting to see how separate the networks remain – even right down to the API structure. While it’s a mild pain to setup the ability to duplicate tweets and status updates, this may be a benefit to an acquisition. Whether or not I want all of Facebook tweeting is another story.
What do you think? Is an acquisition of Twitter by Facebook inevitable?