Tuesday, November 25, 2008

Twitter up for sale

The news that Facebook is trying to acquire Twitter is once again a consequence of the new media's inability to generate money.

According to FT.com

Facebook’s approach to Twitter is set to raise as many questions about the bidder’s value as it does about the target. The social networking site offered to pay for the acquisition in stock, according to one person close to the situation, but putting a value on its shares proved controversial.
Had it used the $15bn valuation at which Microsoft bought a stake in Facebook last year, it would have valued the Twitter purchase at $500m, though that investment was seen as a high-water mark for Web 2.0.


Personally it will be a shame if Twitter ends up in the hands of Facebook but no doubt business will prevail

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