Why would Google be interested in buying Twitter?
This article is about Google's rivalry with Twitter based on the usage by consumers.
- Twitter is valued at about $33bn. Google has around $60bn in the bank, though a lot of that is stashed overseas to avoid taxes on repatriation; a share- or debt-funded acquisition might be simpler.
- Twitter, whose users send out 140-character “tweets” visible to anyone who follows them, has something the search and data specialist does not: a thriving, engaged social network.
- Some think Google’s problem with “social” is that its data-driven culture tends to be blind to the tweaks that make people love social networks. But as mobile use becomes dominant, social networks offer the most valuable advertising space. In the fourth quarter of 2014, 69% of Facebook’s advertising revenue came from mobile ads, up from 53% a year before; and revenues were up 49%.
If Google bought Twitter this could possible make them the biggest media giant.
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