“I’ve been waiting on this rumor for awhile, not because I have any knowledge of talks between them, but because it simply felt inevitable. As Valleywag tells it, Apple is in talks to acquire Twitter, talks which writer Owen Thomas describes as ‘serious.’ Such a deal would have Apple paying $700 million in cash for the Web service,” Arik Hesseldahl writes for BusinessWeek. “I don’t know if this rumor is true, but I’m not prepared to dismiss it out of hand because it makes a great deal of sense.”
“Apple isn’t a particularly strong player on the Web — MobileMe is about the extent of it — and so Twitter would bring, among other things a strong Web development team with a proven record for building successful products,” Hesseldahl writes. “But the real story is the iPhone. I don’t know if there are any statistics to back this up, but anecdotally I’ve noticed that a lot of iPhone users tend also to be Twitter users. The Twitter client Tweetie is as of this morning ranked #32 on the top 100 paid iPhone applications. But the connections between the iPhone and Twitter go deeper than that.”
Hesseldahl writes, “Search that app store for Twitter and you find that not only are there a lot of Twitter clients, ranging from Tweetie, to Twitterific to ZipTweet but that support for the service is built in to an awful lot of iPhone Apps… If iPhone users love Twitter, then apps developers are building Twitter support into their applications. That gives you two arguments in support of an acquisition: Users love it, developers love it. Those are almost reason enough to bring the entire Twitter ecosystem under Apple’s control, and make it an official part of the iPhone ecosystem.”
Full article here.