Facebook, Twitter End Talks on $500M deal

Executives of Facebook and Twitter recently ended several weeks of serious talks, in which Facebook was offering to acquire Twitter for $500 million of its stock.

Kara Swisher at AllThingsD reports top executives of Facebook and Twitter recently "ended several weeks of serious talks, in which Facebook was offering to acquire Twitter for $500 million of its stock." There had been some chatter about a deal, but talks were apparently more serious than was widely known.

The Twitter team apparently decided $500 million wasn't a rich enough price. Since the company has still not developed a clear plan for making money from its popular microblogging service.

There was also a cost issue for Facebook. If Twitter was offered to Facebook’s 120 million users, Facebook execs estimated that it might have to deal with huge SMS fees–up to $75 million annually.“Facebook has its own revenue-generating challenges,” said one person close to the company. “As much as Twitter would give them a lift in the status area, it was still a worry.”

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish