Price Dispute Sinks TwitFace Merger Talks

Twitter questions value of $500M stock offer from Facebook

By Rob Quinn,  Newser Staff

Posted Nov 25, 2008 2:18 AM CST

(Newser) – Merger talks between Facebook and popular newcomer Twitter have ended without a deal, reports All Things Digital. Twitter wasn't satisfied with Facebook's offer of $500 million in stock, apparently concerned that the stock's valuation was too high, say insiders. Twitter also had concerns about how the two would integrate, and wanted to try building its revenue—currently zero—before pursuing a merger.

Twitter's profile has been rocketing up in the web world, irking Facebook founder Mark Zuckerberg, according to some accounts. The deal may be off the table for now but Facebook sources say that they haven't ruled out trying again. "We’d hate to see Twitter go to another company,” one said.

This undated screen shot shows a web pager from Twitter, a short-message social networking site.   (AP Photo)
Facebook founder Mark Zuckerberg gives a demonstration of Facebook Connect while delivering the keynote address at Facebook's annual developer conference in San Francisco, last summer.   (AP Photo/Eric Risberg)
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If Facebook brings $500 million of stock to the table to buy Twitter, the first thing you talk about is whether that stock is worth $500 million
or not.
- Twitter investor Chris Sacca

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