Apple Buying Twitter – Where’s The Strategic Fit?
If you haven’t heard it already, then tuesday’s big news is Apple is considering to buy Twitter (according to TechCrunch Speculation) for a oomphed figure of $700 million.
Can you beat that? Couple of things that come in my mind after I saw this news early today was the
company in question doesn’t even have a monetizable model yet. More so, it’s been already more than 3 years they are into existence and not a single penny out of their business model, legitimately. If we consider that amount of time invested in any business model, we expect it to break even. But twitter is special.
Twitter is internet’s latest darling. Right now it is enjoying the media attention to its core. No one can point a finger at them since they have their user base to take it forward and they have got the media to back them up.
Now, coming back to the topic, Michael Arrington of TechCrunch covered this news:
…Today, though, rumors popped up that Apple may be looking to buy Twitter. “Apple is in late stage negotiations to buy Twitter and is hoping to announce it at WWDC in June,” said a normally reliable source this evening, adding that the purchase price would be $700 million in cash. The trouble is we’ve checked with other sources who claim to know nothing about any Apple negotiations. If these discussions are happening, Twitter is keeping them very quiet indeed. We would have passed on reporting this rumor at all, but other press is now picking it up.
Now BoomTown outrightly said that this news is rumored. Now tracking back to such deals or buyout news with twitter, sometime back Facebook tried to buy Twitter, Google and Microsoft have been giving the red-hot Internet startup lots of attention. More so, Google was rumored that its considering to buy out twitter last month.
But considering the rumor to be true – where is the strategic fit? I mean, Apple Computers & Twitter (the internet messaging platform). There were rumors that Apple is thinking to venture into search engine space and more like that. Valley is full of such rumors since many consider that twitter can give much mileage & traction to win the engagement oriented & realtime search fight. And considering twitter’s hurricane pace of growth (thanks to Oprah & Ashton Kutcher), its not impossible that twitter can make many dreams come alive. But still I consider that once a startup changes hands from entreprenuer to the next, goals and vision changes and screw up happens. Examples are plenty in this case and I guess twitter won’t be much different.
But looking at prima facie interest of twitter’s management team, it seems they still want to be free and advance forward. And I guess as a user too, I would appreciate that, at least for the next couple of years.
Though official confirmation is yet to come from twitter team. But I have no doubts that Apple won’t buy twitter, whatsoever may be the reason.
Godspeed!
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