It looks like Twitter is once again being eyed by potential buyers, with two serious players evincing interest in acquiring the popular micro-blogging site. The result: shares of Twitter jumped 4.8 percent on Tuesday to $53.2 in afternoon trade on the New York Stock Exchange.
But Twitter wants to convey a strong message that it is not for sale. According to Briefing.com via Barron's blog, the social networking site has hired advisors, mostly linked to Goldman Sachs, to "fend off a takeover offer."
The rumours spinning around acquisition of Twitter point towards two serious contenders, one of them being Google. Google's interest in Twitter is understandable a sensible thought but there is no concrete evidence that points towards such a move.
"I think it's reasonable to say there are a lot of reasons why Twitter would have appeal to different potential acquirers for different reasons," x Pivotal Research Group analyst Brian Wieser told USA Today. "But there is no reason to believe at this particular time that there is anything to it that is meaningful."
If Google buys Twitter, it will certainly help the web search titan strengthen its social media presence. Google has a vast empire with services in almost every technical domain, ranging from web search, email service, mobile OS, robotics, AI, and more. However, even with such a strong background, Google has largely failed to summon the users towards its Google+ service.
Facebook is the largest social networking platform and Twitter is its closest competitor. Millions of users daily access Twitter to share their thoughts and indulge in conversations about trending topics using #hashtags. By acquiring Twitter, Google will not only benefit with close-dominance in social media space but also fulfill its hunger for more data.
In order to acquire a well-funded company like Twitter, which has a market cap of over $34 billion, the buyer must be well-resourced. Google, of course, has deep pockets to takeover Twitter, given its cash and investments together valued at about $60 billion.
In 2011, there were reports about Twitter turning down a $10 billion offer from Google, but Twitter CEO Dick Costolo dismissed them as "rumours".
Earlier, Twitter turned down a $500 million offer from Facebook in 2008.