Rumor alert: The Wall Street Journal reports that officials from Google and Facebook have had “low-level” talks with Twitter about potential acquisitions. Still, the source says aren't getting far, but they have shed light on Twitter's net worth – and social marketers should take note.
Some discussions of the microblogging site's worth have valued the company at up to $10 billion. This number seems high to many familiar with the matter. The Journal says Twitter is poised to generate revenue in the neighborhood of $100 million this year.
Why might Twitter be worth $10 billion? The company has released a bevy of new advertising options, and Brafton has reported that eMarketer projects Twitter ad revenue will surpass $150 million this year. These ad revenue estimates don't include money that may be generated by an upcoming Twitter self-serve ad platform. Plus, Tweets recently hit a new high – during the Super Bowl, Twitter says users sent 4,064 Tweets per second.
Still, $10 billion seems a little steep for a company that lost money last year. Facebook may be willing to pay a high price to get a better foot in the B2B social market, and perhaps Google would offer an aggressive bid as part of its continued effort to have a social product that can counter Facebook. As Brafton has reported, Google is coming out with a range of new social features – from Hotpot recommendations for general search to new social data for retailers via Boutiques.com.
Whether Google or Facebook acquire the microblogging site or not, marketers shouldn't underestimate their interest in the service as it demonstrates that Twitter is a key channel to reaching an online audience. As Brafton has reported, Pew data showed that 6 percent of the U.S. population used Twitter at the beginning of 2011.
