Facebook and Twitter recently admitted to failed dealed talks.
Posted by jesse • Read more • Permalink
“The issue of lack of revenue for Twitter in addition to handling the SMS delivery fees was a concern for Facebook as well and probably the social network ... could offer a higher price if they could be certain Twitter would generate revenue, not losses, when serving all the Facebook users.”
“Combining the world’s fastest-growing social-networking site with ... the best-known microblogging service is actually a natural fit. That’s especially true, given that Facebook–for all its powerful online social connections–has seen Twitter race past it in innovating in the “status update” arena.”
“While dwarfed by the likes of Facebook, which has become so mainstream it can hardly be viewed as edgy, the bare-bones Twitter has been generating considerable buzz lately.”
“Twitter's investors aren't stupid: They wanted cash. Facebook presumably doesn't have that much cash to spare.”
“I’m not sure I’d sell a sandwich in exchange for Facebook stock.”
“My bet: the two sides won’t come to an agreement on price anytime soon. And in any case, it will take years to figure out whether Twitter is more Geocities or Google.”
“Facebook's still trying to evolve its own business model (to put it lightly). In this economic climate, does it really want to be handing over $500 million in stock for a company that, while hyped, has even murkier plans for profitability?”
“Did Twitter screw up by turning down the $500 million offer? Probably not. Unlike Yahoo and its infamous Microsoft mess-up, Twitter isn’t walking away at a dead end with no other offers in sight. It sure seems that it’ll have plenty of lucrative options down the road.”
“I’m glad Twitter passed on the deal. For me, Facebook and Twitter are two very different beasts. Although Facebook has tried to implement microblogging into its feature set (with it’s own Status Updates), it still hasn’t quite captured the more simplistic essense of microblogging.”
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