Twitter CEO: Google, Facebook Acquisition Talks 'Just a Rumor'By Channel Insider Staff | Print
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Microblogging site Twitter's CEO Dick Costolo has downplayed acquisition talks in the past, saying the company's goal is to remain independent and grow its business.
Twitter CEO Dick Costolo dismissed as rumors reports that Google and Facebook have offered to purchase the microblog service, the latest in an acquisition story with a long tail.
The Wall Street Journal rekindled the rumor when it said Google and Facebook help low-level talks with Twitter about buying the company for $8 billion to $10 billion.
Costolo, speaking at Mobile World Congress in Barcelona Feb. 14, said "I don't know where these things come from. It's just a rumor."
Costolo, who took the helm as CEO from co-founder Evan Williams in October, has frequently downplayed acquisition talks, noting that Twitter's goal is to remain independent and grow a large business.
The company in December banked $200 million funding that valued the company at $3.7 billion. To wit, an $8 billion or $10 billion offer appears handsome.
Still, in a world where money talks, not every company is like Twitter or Groupon, which thumbed its nose at a $6 billion tender offer from Google last December.
It's easy to see why Google and Facebook, whose rivalry has intensified as the social network has lured eyeballs from the search giant, would be interested in Twitter.
Twitter has 200 million users, accounting for 130 million tweets per day. According to eMarketer, Twitter is on pace to make $150 million in advertising, or triple its 2010 earnings, in 2011. The upside is great.
For more, read the eWeek article: Twitter CEO Dismisses Google, Facebook Acquisition Talks as Rumor.