Twitter, the popular communication device that is sweeping the Internet and keeping millions of people in touch with one another, is currently in negotiations with Apple. The successful social networking website is talking with the iPod inventors, and if they sell out to Apple the $700 million deal will go through in June 2009. Twitter fans may discover that their favorite form of communication will come with new logos and a new owner, which could mean substantial upgrades to Twitter and its software.
The question is, however, is the deal a go or is this just speculation? So far the deal is speculator based on an inside source from ValleyWag. According to the source that was supposedly recruited by Apple to work on the deal, the two companies are haggling over the price of the sale of Twitter. The owners of Twitter have already turned down an offer from Facebook for over $500 million. Additional sources close to Twitter officials feel that it would be very hard for the company to turn down Apple's $700 million offer.
Regardless of who buys Twitter there is still the question of how Twitter will bring their new owners in money. The company has not defined any form of business model and there is no indication of how the social networking site will generate an income that will continue to support its growing customer base of over 6 million users. Twitter should be bringing in over 1,300 percent growth, yet no one is sure how the company is currently managing to do this or will continue to do this and making the sale of Twitter lucrative. One answer to this question is that Apple will integrate Twitter into the services it already offers in its iPhone and Mac services. But even if Apple were to do this, there is skepticism over how much more the Twitter fan base will grow. Apple's iPhones already offer their customers a bunch of services and options.
Apple will not be hurting if they were to buy Twitter. The company is reporting that they have $30 billion in cash to spend, making the purchase of Twitter 'small change'. Apple's purchase of the company would have Twitter stickers all over Apple sites and products. Would this really be a problem? No, but whether or not it would produce more users coming and using the site remains to be seen. People already using Twitter who own iPhones and other Apple products would enjoy the convenience of the two products being merged.
In addition to Twitter, Apple is contemplating purchasing videogame manufacturer EA. EA is the company that produces the popular 'Tiger Woods Golf' and 'Madden Football'. This is not a surprise considering Apple wants to add a gaming platform to their popular iPhone. Apple is planning on offering their customers games via iTunes the same way they are already making television shows, movies, and music available for download. Adding the gaming platform to their already growing list of services is a no brainer for Apple, but whether or not Twitter will be as popular remains to be seen.
Apple Buying Twitter?