5 Reasons Twitter's Worth $1B to Google
Flagging company could use a boost
By Wesley Oliver, Newser Staff
Posted Apr 3, 2009 4:06 PM CDT
The Google headquarters sign is seen in a Mountain View, Calif.   (AP Photo/Paul Sakuma, File)

(Newser) – Google will look like a twit if it doesn’t snap up Twitter, and Henry Blodget of Silicon Alley Insider gives 5 reasons it should part with $1 billion to do so:

  • Search, Google’s bread and butter, is dwindling, and the company needs a new growth engine to energize the business. If it acts now, it may grab Twitter on the cheap.

  • Twitter’s a better fit for Google’s portfolio than YouTube and could bridge its communications gap.
  • Google banks $1 billion of cash every 2 months. If the acquisition turns sour—which many think it won’t—it can file the deal under “oops.”
  • Twitter could emerge as a threat to Google’s search business.
  • Sheer vanity: Google could boast ownership of two websites-turned-verbs.

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Snowleopard
Apr 3, 2009 10:46 AM CDT
google already bought a twitter competitor, Jaiku, but they took it offline. god knows why. But there's been a lot of conversation about twitter's (lack of) revenue model lately. I don't think it's going to be that hard to monetize twitter though, because it's essentially the same revenue model as google: real-time, ultra targeted advertising, based on keywords within tweets.