14 DAY TRIAL // Microsoft is said to be one of the parties that are interested in taking over social network Twitter alongside Google, Salesforce, and Verizon, but we’re hearing that the Redmond firm is very likely to give up on the negotiations because of the high estimated price of the deal.
Although this is just a rumor for the time being, it makes sense for Microsoft to be out of the running for Twitter, especially because the company has recently purchased LinkedIn for $26.2 billion and Twitter is said to be even more expensive than that.
What we’re hearing is that, although it does have the money to purchase the network, Microsoft doesn’t think that Twitter is worth $30 billion, as this is how much the company is aiming to get following the deal. Microsoft has already been criticized for paying too much for LinkedIn, so the company does not afford to make the same mistake twice, especially because it’s not very clear how Twitter would integrate into its lineup.
Buying Twitter makes more sense for Google
Twitter is said to be valued at approximately $18 billion, so the company is looking to get almost double the value as part of the sale, which is raising questions as to how much the other bidders, including Google, are willing to pay for the social network.
But as compared to Microsoft, Google might be more interested in buying Twitter because the service would make a little bit more sense in its case, as the company’s already looking to step away from Google Plus and Twitter could show up just at the right time.
In the case of Microsoft, the firm is already working on social networking integration for some of its products, including Bing, so a possible acquisition of Twitter could help the company expand further in this direction. But on the other hand, Twitter is mostly focused on consumers, while Microsoft is converting into a more enterprise-focused business, so it’s hard to believe that Redmond would have any strong reason to buy it.
For the moment, these are all rumors and Microsoft could very well decide to go for it and purchase Twitter, but given the fact that other big names are involved in the bidding, it’s all going to be a very interesting battle.