Is Google Buying Twitter?
The cast of characters is ever-shrinking in the search and social media world. On Friday, rumors swirled around the possibility of Google plucking up Twitter. Marketers are probably wondering what a possible acquisition would mean for SEO and paid search and social ad costs.
While the rumors pushed up Google and Twitter stocks, watchers were skeptical a deal would happen this year because of how much Twitter would cost Google. Still, mobile search apps are pushing into Google's space and causing "a slowdown in advertisement revenue, writes Martin Blanc for Bidness Etc.
"For Google, Twitter's biggest asset is its real-time search capabilities," writes Shea Bennett for SocialTimes. "So an acquisition makes sense on paper. Furthermore, Twitter would give Google something that it's never been able to create itself, even with Google+—a social network that is popular and actually matters. The cost, however, would be prohibitive, even for Google. So unless Twitter's value continues to fall—the stock is down significantly from its highs, but Twitter still has a market cap of almost $25 billion—I wouldn't anticipate a merger anytime soon."
Then there's also the F-word—Facebook, which is constantly mentioned alongside Google. Google may own YouTube, but Facebook owns Instagram, and on and on.
So what good would this latest acquisition do?
"How can Twitter help Google," asks Paul Ausick in 24/7 Wall Street. "Well, at a market cap of around $24 billion, whatever help Twitter could offer to Google is probably too expensive. Twitter's primary attraction for Google would likely be its 270 million or so active users, and the company's advertising revenues have grown nicely, up 83 percent year-over-year in the third quarter of 2014, for example. Still, total revenue of around $450 million a quarter hardly justifies a price tag north of $25 billion, especially when the user numbers appear to be stagnating."