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NYT: Apple looked to buy a stake in Twitter over recent months; talks are not active

Posted: , by Alan F.

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NYT: Apple looked to buy a stake in Twitter over recent months; talks are not active
"Apple doesn’t have to own a social network But does Apple need to be social? Yes."-Tim Cook, Apple CEO
Tech giant Apple and social networking star Twitter recently held talks in an attempt to have Apple make a strategic investment in the messaging firm. No deal could be worked out and there are no talks currently going on between the two. The story originated in the New York Times which said that Apple's lack of a toehold in the social networking scene led to the talks. The Cupertino based firm sees the importance of social networking and wants to be involved.

Apple was said to be considering an investment totaling in the hundreds of millions of dollars, which would have valued Twitter at $10 billion. In the most recent round of financing, the messaging firm was valued at $8.4 billion. All of this information came from sources wishing to be anonymous which is expected considering the privacy of the talks..

There is nothing going on at the moment between Apple and Twitter. But will talks resume? Apple has integrated Twitter into iOS and with $117 billion in short term investments, Apple could easily afford to take a stake in Twitter and instantly have a larger presence in social networking. Twitter would get the cash, deeper integration into future versions of iOS and the satisfaction that would come from getting financial backing at this stage from the world's most valuable company. It would drive Twitter's valuation higher in the face of Facebook's dropping stock. The company has 140 million monthly visitors who send out messages around the globe relating to their personal life, news and whatever comes into the writer's mind.

"Those guys are a great partner. We think of them as a company that our company looks up to"-Dick Costolo, Twitter CEO
Twitter might not need the money at this stage.  Dick Costolo, Twitter’s chief executive, says it has "truckloads of money in the bank," estimated to be $600 million by some familiar with the company's finances. The money comes from $1 billion in financing raised by Twitter over the years, and more importantly, from advertising revenue. An IPO could take place within the next year.

The Wall Street Journal has repeated the Times story with a major difference as to the timing of the talks. The business paper says that Apple and Twitter had held the conversations about Apple making an investment more than a year ago. With the upcoming iOS 6 offering deep Facebook integration for those using Apple's mobile devices, some are going to see that as a sign that the tech giant has decided to work more closely with that social networking giant. But Facebook is rumored to be developing its own smartphone, which would make it a competitor to Apple, unlike Twitter, which does not have such plans.

Neither Apple or Twitter would comment on the story.

source: NewYorkTimes, WSJ

8 Comments
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posted on 29 Jul 2012, 11:08

1. som (Posts: 768; Member since: 10 Nov 2009)


Apple can takeover Twitter company with no problem.

posted on 29 Jul 2012, 11:51 5

2. ivanko34 (Posts: 617; Member since: 04 Sep 2011)


they cant
all the money is for war and lawsuits

posted on 29 Jul 2012, 11:58 2

3. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)


I wonder what is Apple's strategy to buy into twitter

posted on 29 Jul 2012, 15:15 2

5. darkkjedii (Posts: 10569; Member since: 05 Feb 2011)


I wonder why somebody would thumb down a thought that's not pro/anti anyone. That's plain stupid.

posted on 29 Jul 2012, 23:58

8. roscuthiii (Posts: 1786; Member since: 18 Jul 2010)


The thumb downs should be because the answer to the question is obvious. They're probably due to partisanship though because people can't help but polarize any issue into the proverbial "us" and "them".
But back to the obvious answer... Twitter has become one of the most dominant forms of communication there are. Not only that, or should I say, even more so than that, Twitter has become a marketing powerhouse as mentioned in the article about their advertising revenue. Notice all the hash tags that are inundating the all forms of visual media the websites and television? They're omnipresent. Apple is a marketing expert, and yet somehow their own forays into social networking have met with disappointment. I'd say they're practically salivating at the prospects of a piece of the Twitter pie.
Twitter said nuh uh though most likely due to Apple wanting too much control, regardless of how much money they offered.

posted on 29 Jul 2012, 14:28

4. TheRetroReplay (Posts: 244; Member since: 20 Mar 2012)


I think that Apple would buy Twitter just so that other smartphones (mainly Android) won't be allowed to use it, but that would screw over everyone who uses Twitter by restricting it to Apple devices/services.

Apple's Ping service was such a failure and they'd rather just buysteal something than make their own. Which is Apple's way anyway, buy some small company (or steal and patent it what they have) so no one can use it.

posted on 29 Jul 2012, 15:18 3

6. darkkjedii (Posts: 10569; Member since: 05 Feb 2011)


That's not apples goal with twitter, and that would b counter productive to apple since they, and google have a very lucrative working relationship. Ur post was stupid, full of hot air, and lacked any kind of intelligence or knowledge of tech business. Ur goal was simply to bash apple... U failed!!!

posted on 29 Jul 2012, 22:48

7. Jay_F (Posts: 236; Member since: 29 Nov 2011)


Feel free to use your brain prior to posting any comments, because what you just posted is pure dumbassery.

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