subject: Apple to Buy Twitter? Rumor [print this page] TechCrunch's Michael Arrington is reporting that rumors beginning to float around the blogosphere are stating that Apple is interested in purchasing Twitter for US$700 million in cash.
Twitter turned down a $500 million offer in cash and stock from Facebook, in part because Twitter's investors couldn't agree on whether Facebook's stock was worth as much as Facebook said it was. But Apple could easily pay cash. A source familiar with the thinking of Twitter's board says the company would be hard-pressed to refuse an all-cash offer in the range of $700 million. (Is Twitter really worth that? Since it's business is nothing but a fantasy at this point, any valuation, high or low, is a matter of make-believe.)
Twitter currently has more than 25 million users, and it is rumored that growth has been exploding since Oprah blessed the service with her presence in mid-April. However, despite the size and growth potential of Twitter, there's simply no compelling reason for Apple to spend part of its huge cash reserves to purchase the company.
Like any other Apple rumor, the company's acquisitions have a tendency to venture into the ridiculous. Take, for example, another rumor out today that Apple might buy videogame maker Electronic Arts. I don't believe this rumor either, but considering Apple's recent interest in computer chips and gaming, an EA acquisition makes far more sense than a Twitter purchase
Twitter has been growing massively over the last few months, boosted by appearances and public endorsements by the likes of Oprah Winfrey, Britney Spears and Ashton Kutcher.
There were claims that Google made an offer to Twitter's owners that was promptly rejected after which it became clear that Biz stone and his partners are (a) after substantially more money or (b) thinking that they can do it all alone.
