Twitter rejected a $500 million acquisition offer from Facebook.
Facebook started the talks about buying Twitter in mid October this year. Twitter was offered $100 M cash and $400M worth of Facebook stock. The talks ended as Twitter rejected the offer as their investors decided that $500 million for over 63 million registered users was not enough. They were also concerned wether the Twitter <> Facebook integration could be done properly. Twitter executives also believe that Twitter is able to earn its own revenue as it’s user base is rapidly growing. It remains to be seen how they will actually start earning revenue, as currently they are not making any money. Pretty bold to say no to $500 million!
Now that Facebook has expressed it’s interest in Twitter it is almost certain that Twitter will get more offers in the future – after all, Twitter is a huge hit in terms of the number of users and the online popularity it already enjoys.
Twitter was launched in mid 2006 as a social networking and micro-blogging site that allows users to post updates. A Twitter post is limited by 140 characters and can be posted through their own web form, a text message or an instant message. The company adds constantly new features to their product, such as browser plug-ins, iPod and Facebook integration and Gmail import and search. In April 2008 Twitter launched their Japanese version, which includes advertisements as well.