Two separate sources have reported on the negotiations which will see Google pay an estimated £170million ($250million) for the social messaging network. Twitter has failed to make a profit, but with millions of users - including a near 1000 per cent rise in traffic last year - it has become the buzz of the last six months. The editor of technology blogsite TechCrunch, Michael Arrington, said two separate people ‘close to the negotiations’ have told him that Google is interested in the site.
Twitter has struggled to make a profit, but with millions of users - including a 974 per cent rise in traffic last year - and dozens of celebrity endorsements, it has become the buzz word of the last six months. The editor of respected technology blogsite TechCrunch, Michael Arrington, said two separate people ''close to the negotiations'' have told him that Google is interested in the site.
Google In Talks To Take Over Twitter :----
Internet giant Google Inc. (GOOG) is in negotiations to acquire micro-blogging sensation Twitter for over $250 million, technology blog TechCrunch reported Friday, citing two sources familiar with the matter.
TechCrunch said Google would be making an offer below the $500 million Facebook proposed to Twitter a few months ago, and would pay in cash or publicly valued stock.
"Why would Google want Twitter? We''ve been arguing for some time that Twitter''s real value is in search," said the blog''s Michael Harrington.
"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, Twitter cofounder Biz Stone said last week that he expected finding ways to pump cash in the fast-growing free service, including possibly charging fees for commercial accounts used by businesses.
Stone said Twitter remains focused on growth. The California-based company claims to have more than six million users and a "phenomenal growth rate" of 900% in the past year.
Harrington said if the deal goes through, it would be the second sale by Twitter''s founders to Google. Five years ago, the micro-blogging site had sold the blog-making Web site "Blogger" to the search engine.