Twitter Mania: Google Got Shut Down. Apple Rumors Heat Up.
by Michael Arrington on May 5, 2009

Twitter! Whether you use it or not, or understand it or not, it’s the hottest thing in Silicon Valley right now. It’s brought up in every conversation. And no wonder – the service has exploded to somewhere north of 25 million users and has been growing by 40% a week since that Oprah appearance, says a source close to the company.

Google tried to buy it but was rebuffed by Twitter CEO Evan Williams, says a source with knowledge of the talks.

Today, though, rumors popped up that Apple may be looking to buy Twitter. “Apple is in late stage negotiations to buy Twitter and is hoping to announce it at WWDC in June,” said a normally reliable source this evening, adding that the purchase price would be $700 million in cash. The trouble is we’ve checked with other sources who claim to know nothing about any Apple negotiations. If these discussions are happening, Twitter is keeping them very quiet indeed. We would have passed on reporting this rumor at all, but other press is now picking it up.

Twitter is strongly signaling that it doesn’t want to sell at any price right now. The founders took significant money off the table in the last round valuing Twitter at $250 million, we’ve heard, and are aligned with investors to see Twitter through to the end.

And frankly that’s probably the best thing for the Internet. I wrote in an earlier post that I’d like to see Twitter spread its wings a little longer and see what it can become. It’ll be hard to do that as a subsidiary of Google, Apple, or anyone else for that matter. If Twitter wants to stay independent that’s just fine with me.

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  • Why would Apple be interested in Twitter? It just doesn’t seem like a good fit for them.

  • If Apple buys Twitter, we’ll end up paying for every tweet.

  • Strange rumor. But I agree, Twitter can fly so much higher before it lets some monster company ruin it.

  • I heard vodaphone and t-mobile are considering buying twitter.

  • Google will buy Twitter sooner than later… Watch ;)

    http://www.wannadevelop.com

  • Given the momentum twitter is grabbing around the world, i don’t think they will consider selling anytime soon.

  • I hate twitter.

    • i agree dawn twitter sucks i do believe its a fad kinda like facebook

      • twitter is facebook without the capex

        • I’ve never considered the two in a capex perspective, but that’s very much right on the money. Give or take a feature or two.

        • You have to be kidding? I can almost understand the why of FB, but Twitter? There is NO substance there. FB at least is real stuff even if it doesn’t make sense across age groups.

          But Twitter equal to FB? No way. I normally feel you are pretty right on, but on this one you are way off. Twitter is a Twit of a company and there isn’t much real there.

          Wake up and Smell the Coffee…

        • or the opex. steep storage and bandwidth costs for images and video at FB…

        • Facebook in 5 years is Facebook without the capex… meaning the costs go down exponentially

        • fun watching the chaos Media Center Edition - May 6th, 2009 at 3:18 pm PDT

          Twitter was completely held in chains for a week, apparently by a kid. When a kid writes better code than twittertechs, there’s your sign!

          When other sites with app based on the core twittiwer are acknowledged to work better than twitter, sign number two!

          Can you code better than a 10th grader?

      • There’s a reason why more than half of people who sign up to Twitter stop using it within a month…

        • Agreed. There’s only so many idiotically boring tweets you can stand before you realise you’re wasting your life reading them.

      • Facebook is not a fad.

      • Eventually it is going to dawn on folks that FB, Twitter, etc. are like TV Shows. Not TV Sets. Not TV networks. TV Shows, that can be massively popular for a period of time, but only for a period of time. Right now, they are being valued as if they are emerging technologies, deserving of massive investment to establish a position… and then everyone acts surprised when their popularity fades.

        • That’s a great analogy.

        • Perhaps you are right at some level that Facebook and Twitter maybe fads but not for the same reason. Most likely it is due to trends in technological advancement not simply changes in pop culture.

          Facebook started attracting much more attention and new users when it introduced Facebookapps. People were able to do more things with it and it made sense that it would become the default social network. That’s one of the big reasons, besides MySpace’s ugly design, that MySpace is losing users right now.

          Twitter on the other hand does something unique and separate from Facebook. Plus it’s practically wide open so that you can engage almost anyone without knowing them; something you can’t do in Facebook.

          So yeah, Facebook and Twitter may very well turn out to be a fad like that tv show scenario you suggest. However, many tv shows turn out to be long fads (i.e. The Simpsons). :)

        • I think they are more like new appliances – some end up being the SlapChop or FloBee and some may end up being the toaster…

    • You probably do not understand it.

      • I understand Twitter just fine. It’s stupid and 99% of the posts are vacuous, unless you include those posted by journalists who seem to think they need it to broaden their audience. Statistics also are pointing to the fact that a lot of the new users don’t stick. The owners should take the money and run before all the twits that use it disappear and log on to the next craze.

      • fun watching the chaos Media Center Edition - May 6th, 2009 at 3:30 pm PDT

        Not that I don’t understand, I simply can’t RESPECT it. It doesn’t deserve it because I DO understand it.

        If you want people to adopt higher concepts as users who will advance literacy and foster new programmers then I say you simply cannot be serious and you are derailing a future generation by not expecting them to do much to change their world.

        Too much instant pudding and not enough cooks.

  • If Apple buys Twitter that would be the death of Twitter. Google would be best option, but nothing compared to what the article says. Stay independent!

  • twitter is ridiculously over-rated does techcrunch talk about anything but twitter?

    • As Mike said at the beginning of the post:

      “Whether you use it or not, or understand it or not, it’s the hottest thing in Silicon Valley right now. ”

      Let’s be honest: people would be more furious if TC didn’t cover the hottest thing in Silicon Valley right now regardless of what it is.

    • Well, you have to cover the most talked about stories and love it or hate it, Twitter is super popular right now. I don’t think I’ve ever seen the kind of adoption Twitter is getting by the mainstream media, celebs, and everyone else from any other web/mobile technology before.

  • I hope no one will buy them just yet, but I think Twitter should start buying good and significant apps such as Twitpic and Blip.fm

    BTW, Twitter is also the hottest thing here (Israel) as well.

  • I like them both but Twitter should stay independent and go after big ones.

    Look what hapened to MySpace after selling.

    MySpace who?

  • If Apple buys twitter:
    1. they will start filtering messages (a la NIN access)?
    2. you will have to be cool to use it?
    3. You will have to pay an Apple tax on every message?
    4. It will be compulsory to tweet from iPhones?
    5. Every twit will have Aluminum polish?
    6. You will need to run virtual MSFT compliant twitter version in order to communicate with Windows OS users?

    • “2. you will have to be cool to use it?” i dont agree with this one… the point is if u ll use it then u b cool :) Lolzz!! thats hw apple prods are or rather thats hw the prods that passes thru Jobs TASTE ENGINE are…!!

    • Kfir, 3 and 4 got me thinking in all seriousness- Apple would probably make Twitter free for Mac and iPhone users and make non-iPhone users pay for messages.

    • 7. Will you have to be a complete retarded to use it?

      If so, it’ll be perfect for people like you, Kfir.

      If anyone’s going to buy Twitter, it’ll be Google.
      It doesn’t make sense for Apple to buy it, unless it’s for publicity purposes. Actually it kinda makes sense for any company to own the most influential social hub on the Web. But Apple won’t do it. Google will buy it sooner or later and will integrate it with Latitude, Profiles and all their other services which will make our lives even less private. Oh well…

    • It would then be called itwitter and iquit.

  • Twitter is a perfect match for google and their mission statement, although any company with the bankroll would be stupid not to at least try to snatch twitter up at this point… Given their potential in the search game, twitter’s possibilities are endless. It doesn’t surprise me that Ev and the founders haven’t made a deal yet, they’re smart and have done this dance before.

  • Didn’t Google by Jaiku with any intention of making it compete with Twitter?

  • Yeah I agree It would suck if apple bought it. I would like to see twitter expand even without being associated with google, apple or any major corporation taking it over.

  • Twitter build his base now, and will not sell ;-) . This negotiations are normal, they must to show their stakeholders that Twitter has value and increase his value. Be patient, twitter will be great on web microspace :-)

  • If true, they are running a dangerous risk of losing big. There seems to be many companies who become convinced by internal echo-chamber and hypesters that they are about to rewrite history and shirk deals that are probably unfavorable to the acquirer over the long term.

    One of the best things Twitter has going for it right now in uncertainty about its future. All you know is that it is gaining large amounts of traffic, but no one knows where this will all lead. This fog of the unknown casts a reality distortion field effect as people are able to be quite inventive with ‘what can be’

    However, once uncertainty of world changing success disappears and a mundane reality driven pragmatism sets in, the price premium doesn’t look so good anymore. And sometimes by this point, so many rounds of funding have occurred, that the valuation exceeds any reasonable guesstimate of returns.

    Does anyone really think Digg is going to get a magnificent payday at this point? The luster has worn off, and at some point, people will realize that Twitter is not in fact, the next best search engine, or even a particularly great microblog or real time message system. I’d say it’s more like the Infoseek/Lycos of its genre, a good first attempt, by with no defensible moat and at danger of being blown away by a much superior implementation later.

  • From a strategic standpoint, it makes much more sense for Yahoo to acquire Twitter. Apple? I doubt it…

    • Great point, Yahoo should definitely be courting Twitter at this juncture. They need all the help they can get and a big move like acquiring Twitter would be a great boost and it would give them a leg up on Google, something they haven’t experienced in a very, very long time.

      • I agree that in theory Yahoo should be the one courting Twitter, but I have little faith in Yahoo being able to successfully monetize it and think it would just result in the biggest fail whale of all.

    • Yahoo doesn’t have the money. Everything they do is being watched by the stock holders. They actually need to shrink their stuff instead of buying companies and websites.

  • if apple’s going to buy twitter i’d hope they loop every tweet through QA before it’s published to the public stream.

  • I hope this doesn’t go through. Twitter has so much potential and its got the time and the community to fulfill it. Keep Twitter out of the corporation’s hands and we’ll all be better off.

  • Good luck to whoever buys the website. I really hope it is worth 700$ million. I just hope so.

  • the question is, wheres Microsoft?!

    • Microsoft and Bill Gates are not dumb enough to waste 700$ billion for a simple website that hasn’t brought in any profit whatsoever. They better use that money to create an actual product like a search engine.

      • It’s $700 million buddy…

        • fun watching the chaos Media Center Edition - May 6th, 2009 at 3:44 pm PDT

          It’s not worth it. You Tube was almost worth $1.68 Billion, probably more like 1.1 and it at least performs a public service twitter never will.

          You Tube is for all to see and contribute to and it chronicles history as well as it entertains and informs us.

          What does ‘I am eating pastrami on rye, listen to Magic 100 Morning Zoo’ offer the world?

        • it’s only worth as much as the buyer can then re-sell it for later, whether in one big transaction like $700M or 1 million advert opportunities for $700 each. will be like catching falling knives.

  • I agree It would be better if Twitter remained independent.

  • Wow. Apple puts one single article on their Web site about how Twitter (the company) uses Macs in their office and suddenly a rumor starts that Apple is going to buy them… LOL!

  • That doesn’t sound like an Apple move at all.

    I’d like to see Apple buy Real Networks. It’s trading at about cash so you get $600m in annual revs for free. Convert everything to QuickTime. Add subscription music/content tomorrow.

  • I am not sure if twitter is the future but what I am sure is that we can get a real estimate of its value if we ask http://wolframalpha.com ! LOL if you don’t know what that is. It is suppose to be the best thing since twitter Popular Term speaking. click on by and see What is Wolfram|Alpha @ http://askwolframalphs.com Maybe it will be the next big purchase by Apple.

  • If Apple buys Twitter, each tweet will have to go through a week-long approval process before getting rejected for “objectionable content”. Then there will be several angry blog posts on TUAW until it gets mysteriously approved. Tweets that duplicate Apple-provided message and sloagan functionality will not be approved, however.

  • I mean alittle bit of what everyone is stating is true. Twitter is doing completely fine independently, and if someone purchases it we will all (that is the twitters) have to pay a ridiculous amount just to network and have fun. Prime Example: look at facebook it “WAS” free!! now you have to pay to send someone a “SILLY GIFT” as a thank you!!..smh..sad everything cost us now and days..these websites start off free then charge you in the long run, thats why im on “TWITTER” before the hype because, when and I QUOTE “WHEN ALL THESE PPL JUMP ON THE BAND WAGON BECAUSE OF THE BUZZ TWITTER CREATED GROWS TO A INCREDIBLE RATE THE WILL BE PAYING A LARGE SUM THAT MATCHES UP WITH THAT SAME BUZZ”…LATER HOMIES

  • Well done for adding to the froth and hype of twitter once again. I’m excited to see it all burst.

  • Historically Apple does not buy software companies very often. They just clone their products using unpublished OS hooks if they figure they’re valuable and strategic to Apple.

    There’s a lesson there for the iPhone app community.

    Apple sometimes buys chip companies.

  • Apple+Twitter = eBay+Skype = fail.

    • Wait. Shouldn’t eBay buy twitter.
      There would be obvious synergies. eBay sellers have twitter accounts and could improve sales rates by reaching out to buyers via twitter and DMs.

      ha ha ha ha ha. LMAO

  • I think Twitter is amazing in with what you can do with it. If you’re thinking it’s a fad you’re most likely right but I think it’s what you do with your twitter account that more of the fad. Apple buying twitter just sounds weird and quite suspicious. I think they should hold on just a little bit longer.

  • would explain why they rejected tweeties latest update on the app store for ‘explicit content’ even though Safari, Mail and Youtube apps dont feature any swearing censor either

  • Interesting article. We will find out if it is all true. Twitter surely has some very valuable implications. Those who don’t understand those implications, will not understand its value. Yet, twitter has got to make some money. Selling to a business that knows how to make money in the technology sector is not a bad idea for the business but what about the consumers? Sounds like a fun turn of events.

  • Wow! This is HUGE news! Google seemingly dominating EVERYTHING on the internet and Apple tearing it up in the mobile market, now making a strategic move to gain space in social media! I wonder if this could pose a potential exclusivity deal with twitter on Apple iPhones? Hmm. Should be interesting to see how this all pans out and if Apple purchases Twitter!

  • I think that I would speak for most people here in New Zealand. Keep twitter with twitter. Don’t sell to anyone as it will loose its ability to be a free voice.

  • none of them will buy twitter, actually nobody plans to buy this nonprofitable company at this high valuation, just some of the twitter investors are making up these news to create more hype and sell it out quickly and cash in. why apple and google are mentioned as buyers? because these two companies are the only ones who was profitable in last quarter, everybody else is loosing money, obviously they cant be buyers. twitter does not fit into apple, forget about apple. google, well google bought jaiku and killed it, only way google needs twitter is for search, but twitter is already open enough so that google can use it in its search results. other than that, google has already spent enough money on stuff like youtube which does not bring money to the house, why would it buy another youtube?
    nor apple neither google is buying twitter, its just creating of hype so that some idiot jumps on the bandwagon and buys twitter for this price.

    • >none of them will buy twitter, actually nobody plans to buy this nonprofitable company at this high valuation,

      you’re so right, it’s not like Google went out and bought YouTube for $1.6B…….that was a couple years ago and they still can’t figure out how to make it profitable.

  • HAHA google go shut down it serves them right but i am sure we do not want apple buying it look at what google did to youtube there are ads on youtube now a lot of them but i love how twitter does not have adsense or anything

  • I am not always in support of buy out by these huge companies each time something great comes out from a smaller companies. Let’s give twitter time to expand and grow. No more monopolizing of the internet innovations.

  • is this new really serious ????

  • Twapple? Sounds good but unlikely.

  • Got to say this contrasts strangely with this article in Adage predicting that one day VC’s will be just fed up with funding something only bleeding money.

    Especially the comparison with Geocities sticks.

    That aside, I’m on Twitter too.

  • apple would suffocate twitter even faster than google.

    i know twitter in its current form is going to die someday, but apple or google for that matter would certainly dilute twitter under their brands.

    • it should be easy enough for Apple to code up their own without paying twitter CEO’s a cent. what makes “The next big thing” is the elitist allure and snobbishness of it all, something Apple has been doing for 25years

  • another real evidence of intangible ideas.

    business should more careful of their competitor who created in –old said as –’different segment’.

    there is no segmentation in globalized world.Everything could be winning alliance as well as our next destroyer

  • Wowser! Twitter is growing too fast!

  • Does Apple Need Twitter for Search?

    • fun watching the chaos Media Center Edition - May 6th, 2009 at 3:48 pm PDT

      When in the hell has twitter ever been a search engine? People are popping virtual pills!

  • Come on Twitter – stay independent. Too many sites owned by the giants will become a miserable user experience. Stay independent… Vince

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