Friday, February 11, 2011

Facebook, Google in talks to buy Twitter: Report

Facebook and Google have discussed acquisition possibility with micro-blogging service provider Twitter, according to a media report.

"Executives at both Facebook and Google, among other companies, have held low-level talks with those at Twitter Inc in recent months to explore the prospect of an acquisition of the messaging service," The Wall Street Journal reported, citing a person familiar with the matter.

The report further said the talks have so far gone nowhere, but the prices being discussed value the US-based micro-blogging service provider between $8 billion and $10 billion.

Twitter, which was created in 2006, started selling ads last spring against its business of allowing users to send messages of no more than 140 characters.

It is just one of many tech targets being batted about as valuations climb. In December, when it got USD 200 million in new venture capital, Twitter was valued at $3.7 billion.

Twitter's revenues and valuation have risen even as the company continues to work on ways to translate its more than 200 million registered users into a profitable business.

The company had revenue of $45 million in 2010, but lost money as it spent on hiring and data centers and estimates its revenue to be between $100 million and $110 million this year, the report said.

According to the publication, Twitter spokesperson declined to comment on its finances, valuations and interest by other companies, while Google and Facebook also declined to comment.

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