Twitter turned down Google's $10 Billion

In a news piece titled, chronicling the life and times of Twitter by Fortune, the world is informed that since its launch, Twitter has attracted Internet behemoths like Microsoft, Facebook and Google, clamoring to buy it in the belief that it is the one social property with the potential to compete with Facebook (in Facebook’s case, it would have been an attempt to add a utility it lacked).

 In later 2010, all three considered buying the company. While Microsoft never made an offer, according to the report, Facebook offered $2 billion for Twitter, and Google, by far the most serious among the lot, offered as much as $10 billion.

But guess what Twitter did? It turned down Google’s $10 billion.

Now this has come as a surprise to some; and some even finding it stupid. They believe, Twitter guys should have pocketed the money and left for inventing some other service they can make real money with.
Among Critics, is SAI’s Nick Carlson, who provides the following data to prove the extent of Twitter people’s stupidity:

A user base estimated at fewer than 20 million active users. Still, a relatively modest sales engine with revenues in the tens of millions of dollars. A Board reported to be in disarray. Two part-timers leading the product team.

Add to this a few other instances where critics appeared quite vocal.

In the Mobile World Congress this year, Twitter CEO Dick Costolo, had to answer the most uncomfortable question for any online business– where will the money come from. Interestingly, Dick had to hide his uneasiness with spurts of laughters.

Harboring inside the feeling of suspicion, noted Tech blog, Techcrunch, suggested Twitter to get some intervention before things got out of hand.May be with the suggestion, Techcrunch meant, allowing Google to intervene and make Twitter a turnaround, just as the search giant did in case of Youtube after acquiring in 2006.

Although there are no ways to know how a business will fare in future; and whether the revenue Twitter is making right now will not make it lament missing Google’s $10 million later; but the fact that, Twitter had little problem raising another $200 million in a financing round led by venture capital heavyweight Kleiner Perkins at a valuation of "only" $3.7 billion. It can be assumed that those who are betting their money on the service still have faith on it. --------

No comments