Thu 10th of February 2011, filed under Social Media
Twitter could be looking for a buyer at a cost of $10 billion (£6 billion), reports the Wall Street Journal. According to "people familiar with the matter", executives from the microblogging site have been in talks with companies including Facebook and Google to "explore the prospect of an acquisition".
According to the Journal, the deal is said to have a price tag somewhere between $8 and $10 billion. This figure is particularly interesting because Twitter made a loss in 2010, after reinvesting all its £28 million of revenue. Despite this, popularity and investment continue to make the site a success.
Strength to strength
In late 2010, Twitter received £125 million of funding, while just this week a further £50 million was invested by venture capitalists Andreessen Horowitz. The site currently has 175 million users, and hopes to reach 200 million in 2011; last week's superbowl saw 4064 tweets being sent in a single second. To monetize this popularity, the site began experimenting with social media marketing last year in the form of Promoted Tweets.
Facebook originally tried to acquire Twitter in November 2008 in return for £312 million in stock. At the Web 2.0 conference, CEO Mark Zuckerberg said Twitter was an "elegant model" and revealed he was "really impressed by what they've done". The deal fell through, and shortly afterwards, Facebook status updates were remodelled.
Twitter, Google and Facebook all declined to comment on the rumours of a buyout.
Posted by Rachel Hand