Apple’s Tweet
Posted on May 6th, 2009 by Admin in the Articles section
Twitter is the hottest microblogging site on the planet. As 25 million Twitter addicts tweet their way through life, several tech giants have cast the eager eye of acquisition on the young company. It was no surprise when rumors leaked of Google, Microsoft, and Facebook’s interest in buying Twitter. But it really raised the eyebrows when notable, and oh-so-reliable, sources began murmuring about an Apple takeover.
The Cost
The price tag on a proposed Twitter buyout could reach $700 million, maybe higher. Twitter said no to $500 millionish offers from other tech giants. Apple, sitting on a $30 billion pile of cash, has the chutzpah throw the price tag up a couple hundred million. But isn’t that a lot of money for a social networking site? As history tells us (Facebook and MySpace) social networking sites aren’t exactly the most profitable businesses. Why would Apple spend so much money on Twitter?
Could Twitter be different? Or maybe it’s Apple that’s different, and will be able to capitalize in a way that only Steve Jobs could conceive of. Either way, Apple is rumored to spend a sizeable chunk of their well-earned cash to buy a website—a website where people tell their followers what they ate for lunch.
The Reason
When Apple makes a move, you can be sure it is a calculated and thought-through move. As techies ruminate on the proposed Apple-Twitter union, one word comes to mind: iPhone. Although you can tweet without an iPhone, the cool iPhone apps that help you tweet like a pro are only available through Apple…and an iPhone. Although it seems like small brick upon which to build a castle, this could be a driving reason why Apple may make the purchase. But then again, Apple may have something new in the works that may make a Twitter purchase make perfect sense.
The Timeline
As with all Apple rumors, we won’t know the truth until June 8, when Apple holds the Worldwide Developers Conference in San Jose, California.
