Good News: Facebook’s Deal for Twitter Fails

According to BoomTown, Facebook and Twitter were hot and heavy about putting a together a deal that would have seen the world’s leading social network acquire the world’s leading microblogging service for $500-million.

The deal, however, fell part because Facebook wanted to finance the deal with stock, and who knows how much stock is worth these days given the volatility and unpredictability of the global capital markets.

That said, I’m glad the deal didn’t happen.

Why?

Well, Facebook and Twitter strike me as two completely different types of animals. If Facebook had acquired Twitter, there will be no doubt in my mind that Twitter would change somehow.

Perhaps it’s the sense that Twitter is this stand-alone entity that has gone from zero to 60 almost overnight, and captivated millions of people in the process. And I would hazard to guess many of the people using Twitter aren’t ardent Facebook users.

But if Facebook did acquire Twitter, you can be sure that it would only be a matter of time before Twitter was “integrated” in Facebook.

If Twitter doesn’t feel any pressure to roll out a business model any time soon, why should it feel any pressure to sell itself. Of course, if the right deal comes along, they should go for it but Facebook doesn’t strike me as the right partner.

More: TechCrunch notes that Marc Andreessen has its hand in both post, being an investor in Twitter and a member of Facebook’s board. As well, Profy has a post that suggests Twitter’s now officially in play so it will be interesting to see other offers that emerge.

Technorati Tags: ,

Be Sociable, Share!
This entry was posted in Twitter. Bookmark the permalink. Post a comment or leave a trackback: Trackback URL.

5 Comments

  1. Posted November 24, 2008 at 2:19 am | Permalink

    I'm not sure I understand why it would be a good move either. Facebook already uses microblogging via wall/status updates. You can add Twitter app to Facebook to cross-post from Twitter to Facebook. No need to merge them, they already are.

  2. Posted November 24, 2008 at 2:25 am | Permalink

    You would assume Facebook would simply improve its microblogging platform by doing something like rolling out a AIR client or setting up a standalone online entity that would be Facebook-friendly.

    This strikes as one of those typical Web 2.0 deals that, in theory, looks good but never works out as planned.

    Mark

  3. Posted November 24, 2008 at 2:41 am | Permalink

    I don't think they will though. I think they want to stay in the walled-garden. The let RSS and email out, but Twitter wouldn't help them get out much. I agree, if they want out, there's better ways to do it.

  4. Posted November 24, 2008 at 3:38 am | Permalink

    Twitter (by my definition and opinion) HAS to live outside of a platform like Facebook. It isn't something like IntenseDebate that be acquired and integrated into WordPress.

    The architecture is different. The audience is different. Even just swapping out Facebook's own 'status updates' feature for Twitter wouldn't make sense.

    I'm glad to see they passed on the deal and have instead decided to keep moving along their own path.

  5. zong
    Posted November 24, 2008 at 5:17 am | Permalink

    Also what is the point. Twitter has "only" 6 million users and writing Twitter clone based on Facebook technology is not even a big deal. They have the infrastructure and already pretty similar functionality so they could write it themselves. So I don't think that if they buy, it is not because they want to integrate Twitter into Facebook. It is because they think that Twitter as a brand is the most valuable asset.

Post a Comment

Your email is never published nor shared. Required fields are marked *

*
*

You may use these HTML tags and attributes <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Sign Up For My Weekly Startup Newsletter
  • A curated selection of top-notch startup content
  • Focused on operations, finance, marketing & sales
  • Delivered every Saturday morning
  • Get a free e-book on 118 of the best digital marketing tools
Thanks for visiting Twitterrati. This blog is no longer being updated. I am writing on a regular basis about startup marketing at markevans.ca/blog/