Facebook, Twitter End Talks on $500M deal

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.”

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About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.

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