Wednesday, May 25, 2011

Rumors Have Twitter Paying $40M for TweetDeck

It's not the first time Twitter is rumored to be acquiring TweetDeck, but it might be the last. Indeed, the rumor mills are churning around the two social-media companies again, but this time sources say a deal has been inked.

CNN Money is citing "sources close to the deal" in a report that Twitter bought TweetDeck in a cash-and-stock trade totaling about $40 million. Twitter isn't responding to the rumors, and TweetDeck is also in silent mode. Many analysts expect an announcement to confirm the acquisition, but for now Twitter's global PR team has one thing to say, by tweet, "For all those who might be curious, we continue to not comment on rumors."

Twitter's Exclusivity

TweetDeck is a personalized browser for staying in touch with what's happening now, connecting with contacts across Twitter, Facebook, MySpace and LinkedIn.

It lets users customize the Twitter experience with columns, groups, saved searches, and automatic updates. Users can also see what other people are saying about them, and send tweets and share photos, videos or links from the third-party software.

"One could argue that Twitter spent the money to acquire users it already owns," said Greg Sterling, principal analyst at Sterling Market Intelligence. "But it's also a defensive move to prevent UberMedia from owning the popular Twitter client and gaining leverage over Twitter."

Indeed, Twitter has shown sensitivity to others scraping off its popularity. Twitter blocked UberMedia's apps Relevant Products/Services last year. At the time, Twitter COO Dick Costolo said the company's primary concern was the long-term health and value of the network Relevant Products/Services. Twitter backpedaled a few days later and allowed third-party apps access to the site.

If the acquisition rumors are true, it would be Twitter's second acquisition in as many years. Twitter acquired mobile Relevant Products/Services-messaging Relevant Products/Services company Cloud Hopper in April 2010. The technology Relevant Products/Services helps Twitter process SMS messages.

Who Buys Twitter?

While Twitter may be making acquisitions, there is still talk of who might snap up Twitter. In February, The Wall Street Journal reported that Silicon Valley giants were estimating Twitter was worth between $8 billion and $10 billion -- and an acquisition could be looming.

Specifically, the Journal reported that executives from both Facebook and Google Relevant Products/Services, among other potential suitors, have engaged in low-level discussions with Twitter in the past few months. The discussions reportedly revolve around buying the micro-blogging site that has taken the social-media world by storm. The Journal cited "people familiar with the matter."

Facebook reportedly tried to buy Twitter for $200 million in 2009, but was rejected. Google didn't buy Twitter, but acquisition plans were rumored. Nearly two years ago, the rumor mills churned out the notion that Apple would acquire Twitter for $700 million.
 

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