It sounds exciting to hear a rumor that Google is negotiating to take over Twitter. Google wants to buy twitter while it has not yet reached its ultimate value. However, Twitter wanted to grow and Google failed miserably. Twitter explains that they wanted to build a profitable and grow as independent company.
As twitter grows and become an in demand tool for web communication, thus becoming major component to spread information to the world many companies are planning to buy it. But Twitter CEO Evan Williams said, he will not sell Twitter even for a billion dollars (four times higher than $250M rumored offer from Google).
Most of the companies today have pull down their spending, as a result of global crises and that Google thought that Twitter’s value will drop as well. On the contrary, Twitter is surviving and unlike other companies that are going down, it continually rises as one of the leading social medias today.
Internet business is proven profitable but for Twitter, they believe that TIMING IS EVERYTHING. If they wanted to end their game through selling, a lot of deliberations are to be considered:
• Economy is down and future is unpredictable
• Majority of people are not yet patronizing Twitter and competition in web business between other social medias like Facebook and MySpace is high
• Twitter has not yet reached majority of people in the market
Google is known from purchasing billion of dollars of web based companies. Their biggest purchase so far was the $1.65B in stock of You Tube. This purchase compliments much to Google’s mission of organizing the world’s news and information making it universally accessible and visible. Today You Tube is still dominating. The acquisition will still retain You Tube’s distinct identity, thus it is still struggling for Google to monetize the most popular video site. That’s why it’s a challenge for then whether to grab that chance of purchasing another service wherein ROI is unclear.
In an article of Boom Town by Kara Swisher, she stated with admiration that “Twitter Should Ignore the Hype and Get Back to Work”. Boomtown reported that Negotiation of Google to acquire Twitter is premature and definitely resulted in one certainty. She pointed out that perhaps significant of the deal turned out is that someday Twitter might be quietly profitable.
Twitter has its grand plan on making money and giving it up today for them is not profitable. There will be more shooting stars in the universe they can hit by going across a very dangerous valleys of expectations and hype.
Twitter executives must now focus on the most important thing in this business – BUILD TWITTER BUSINESS AND AUDIENCE. They must try to ignore noisy and pointless tweeting. Twitter must face a lot of struggles. With this issue of turning out offers from Google, twitter emphasizing that holding out for top dollars of money will lost their valuation momentum.