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Apple Said to Wrap Up $700m Twitter Purchase

Gordon Kelly

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Apple Said to Wrap Up $700m Twitter Purchase

I feel mildly unclean even writing about this (perhaps that's the best part) but here we go...

Apple, yes Apple, is apparently locked in "serious negotiations" to buy micro blogging phenomenon Twitter for $700m. Quoting a "source who's plugged into the Valley's deal scene and has been recruited by Apple for a senior position" ValleyWag claims the duo want to unveil a deal by 8 June in time from WWDC 2009.

My response? What piffle!

Yes, this news is sweeping the Internet (and naturally Twitter) like swine flu and like this porky illness seems to have grown completely out of proportion. How is this madness? Let me count the ways:

  • Apple has no ad model

  • Apple is hardware and OS focused

  • Apple doesn't do 'free'

  • Twitter image is cute and bumbling

  • Apple image is slick and expensive

  • Twitter apps are already multitudinous on the iPhone and the best (TwitterFon) free

  • Twitter has already stated it will not sell for under $1bn
I could go on... and on... and on.

Ultimately, this makes no sense whereas it would be a perfect fit with Google, its unobtrustive Adsense system and range of services. In fact, Facebook and even Microsoft and its stumbling Live programme make better bedroom buddies. Then again, daft, ill-fitting purchases aren't unheard of in this industry - after all eBay bought Skype for $3.1bn!

So all in all you could say I'd place Apple pretty low in the betting here. How low? In a list of potential Twitter suitors: somewhere between Dyson and Heinz.

Update: Now there is talk Apple will buy Electronic Arts. Oh dear.

Links:

via ValleyWag

TrustedReviews on Twitter

GoldenGuy

May 5, 2009, 7:16 pm

I'm just seeing the Orange cinema-ad style executive : "Beanz meanz... Twitter! Yes! This will happen to-day."

jopey

May 5, 2009, 7:52 pm

Some one is gaming the stock market today me thinks...

Tommy K

May 5, 2009, 8:20 pm

I lol'd





"So all in all you could say I'd place Apple pretty low in the betting here. How low? In a list of potential Twitter suitors: somewhere between Dyson and Heinz."

LinguisticPedant

May 5, 2009, 8:38 pm

... "Update: Now there is talk Apple will buy Electronic Arts. Oh dear."





On initial reaction, I don't like the sound of that. EA has been pushing its new IPs in the last year or so to the benefit of the hardcore gamers... something it should be highly commended for. If Apple take over, I'm thinking way too many mainstream titles (World of Warcraft, The Sims) and not enough progressive titles like Dead Space and Mirror's Edge.





Besides, Macs aren't gaming machines per se and therefore I feel Apple will have a bias in developing games for these non-graphic-intesive machines. I also fear that the games they produce will be highly limited in terms of age ratings. For example, I can't see Mature games being at the top of their priorities and considering Nine Inch Nails app has just been pulled because of its 'questionable' content, I think I could have an argument.





Sorry, rant over. :)

charea86

May 5, 2009, 10:13 pm

I'm starting to miss Steve Jobs

smc8788

May 5, 2009, 11:14 pm

Oh noes, Apple is going to buy the whole internets!





But in all seriousness, I don't give a damn about Twitter, and if they buy EA then I'll eat my hat.

rav

May 6, 2009, 1:59 am

point three was definitely the best one. apple definitely don't do free. or to be fair, unprofitable.

Hallainzil

May 6, 2009, 2:37 am

Can I start a ridiculous rumour too? I heard (by which I mean I made up) that Apple are considering buying General Motors. Something about wanting to try something completely different, to buy a company that doesn't fit their business model at all.

Craig Turner

May 6, 2009, 3:27 am

I've thought for a while Apple should invest in something external for once, an internet phenomenon like twitter may be a complete opposite buy but what the hell? Will only leave 40bn in the bank in cash right? :D





I also think investing in EA or a games developer is a brilliant idea, something Apple still needs to invest in order to convince the casual gamer who is still unsure of buying an iMac or whatever even though it can play games well.

SRS

May 6, 2009, 3:33 am

The combined company will be rebranded as Twipple(tm)(r) - You read it here first.

Xiphias

May 6, 2009, 4:22 am

I think the rumour about Apple buying Crytek could well be true though, with Apple starting to include decent graphics cards in their iMacs, having the next Crysis as a poster child would be a good incentive to get gamers to buy their expensive machines.

hankb6d

May 6, 2009, 4:24 am

A beautiful marriage - Twitter is for twits and I prefer an apple with a price tag that's easy to swallow. Make this mac only too.

GoldenGuy

May 6, 2009, 5:07 am

"I'm starting to miss Steve Jobs"





It's possible that Steve Jobs is starting to miss Steve Jobs.

Jesper

May 6, 2009, 9:47 pm

Even if it is a silly thought, I do not find it completely outlandish for Apple buying into new markets. I think, without having checked their books, that they are in a similar problem as Microsoft. Too much money, too little time. And when it comes to companies, money in the bank is just a waste, maybe not right now, but generally speaking. They are much better off investing them in something silly. Like Microsoft trying to burn some cash buying that Internet mammoth.





Since I find it even more unlikely for Apple to buy companies already in their primary business area like Dell or HP, a bit of diversification wouldn't hurt. Who would have thought five years ago that Apple would be into phones?





Regarding the free part, I completely agree. They will most likely make it a pay per message service, much like text messages on the mobile phone. However they will surely make it so sexy that people will use it anyway. Which will annoy me even more.





It reminds me of an article I read not long ago about Facebook and Youtube. Both hugely popular sites and both huge black holes just burning away cash like gasoline in a Humvee. The main point was that free will become less and less the key word for internet services. Just look at last.fm. I am sure you Britons are still listening away joyuously, but for us continent-dwellers things are not as rosy, we have to pay for that stuff now!





Just my five cent.

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