How much is Twitter worth?  Apple rumored to have made $700 million offer last year

iTunes & App Store“Only in the bubble of Twitter-obsessed San Francisco would a buyout offer of $2.5 billion seem ‘insulting,'” Sid Yadav reports for VentureBeat. “Yet that is reportedly how executives at the microblogging startup saw an informal offer from Google and a larger offer of $4 billion from another bidder earlier this year.”

“Facebook previously made Twitter an all-stock offer of $500 million in 2008,” Yadav reports. “Apple also may have made an offer of $700 million, going as far in its due diligence as interviewing some key technical employees, last year, according to unconfirmed reports that were roundly dismissed at the time. Now that Apple has launched its own social network, Ping, and partnered with Twitter, though, those reports of Apple’s interest make far more sense.”

Yadav reports, “Everyone wants in on Twitter’s precious tweets, it seems. And the price tag keeps rising.”

Full article here.


  1. I’ll iCal most of you on this. I recall in 2007 that most respected minds thought that investing in Apple was a losing proposition. In case you haven’t noticed, businesses are using Twitter increasingly as a communications tool, and often news breaks first on Twitter.

    Yes, there is a lot of banal blather on Twitter. I don’t want to know that you’re the Mayor of Starbucks in your neighborhood, or that you’re about to take a shower. But for example, this holiday season, retailers will offer special deals on Twitter. Corporations monitor Twitter closely to see what consumers and customers think of them – it lets business take the pulse of consumer sentiment. Increasingly, Twitter is how celebrities communicate with their fans, how film studios measure buzz on a new movie, and often is the first place where breaking news is reported.

    So to those of you who doubt Twitter and call it a fad, I have a hunch that some very smart guys will be insanely wealthy in a few years. Also, I could not help but to note that Jack Dorsey, a Twitter founder, is already well on his way to another huge success with Square, which will change how credit cards are used by vendors and consumers alike.

    I think I’ll go tweet this article…

  2. I’m not out to disparage twitter, since there are those out there who do get it and are getting value out of it.

    I guess I’m just an old fogey, because I really still do not get twitter. I guess I should get a copy of Twitter for Dummies so I can get a better understanding of it and how I might be able to derive value from it. Seriously.

  3. It’s useful, to a degree.
    E.g. a phone company could publish status updates for outages on their twitter-account(s) – and individuals could read them.
    Of course, they could also publish them as RSS-feeds (few seem to grasp that concept, though), but twitter allows for some feedback from users.
    2 bn is a bit much, though.

  4. @Botnivik,

    “lol Mike, you’re comparing Twitter to The Beatles? jesus, man, get a grip…do you compare Etch-A-Sketch to the Sistine Chapel?”


    No, I absolutely did not compare Twitter to the Beatles.

    I said it’s likely the same group (tech geeks) not understanding the value of either. They simply didn’t understand the value or importance of The Beatles, because they don’t like The Beatles and therefore thought it was not a big deal.. but they were wrong..

    Same scenario with Twitter, just because the tech geek MDN crowd doesn’t use or understand Twitter doesn’t mean tens of millions of kids don’t..

    Like I said in The Beatles thread the other day..”Steve Jobs “gets it,” and that’s all that really matters since he’s the one running the company.” ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

  5. Twitter is in the process of maturing. It’s a lot like how blogs matured. In the beginning, blogs went through a “fad” phase where every random schmuck had to have a blog, and the blogosphere was nothing but a huge pile of random worthless crap written by people you no reason to care about. Eventually blogs matured to where a “cream layer” of blogs written about useful topics by someone worth reading rose to the top, where it was easy to subscribe to the good stuff and ignore all the noise. Twitter is on its way to that point.

    While I have absolutely no interest in reading random tweets from random people, just as I never cared about Joe Schmoe’s blog, I like some of the specialty feeds that have developed. For example, sports teams that are far too small to get national TV or radio coverage will tweet the play-by-play of their games.

    My main problems with Twitter is I don’t see how you ever make any money from it.


  6. Nobody is doubting the usefulness of dropping a few lines to communicate. That seems fine. I think the problem is that Twitter has a very simple formula in a very simple site, and that seems easy to replicate with strong publicity.
    Twitter won’t be alone. In few years or even months we will be “twitting” from anywhere. We won’t need Twitter. Google’s Buzz is just a start. Many others will come.

  7. MikeK
    I don’t care for Twitter and I happen to be a big Beatles fan.
    If people want to use it and if other make money off it, well then good for them. Makes me no difference.

    When you iCal us, be sure to put that that I don’t care if people use it or not. Some things are not for everyone.
    And be sure to spell my name ‘TowerTone’ (with two ‘balls’…)

  8. There are several.problems with Twitter.

    The first one is they have yet to figure out a way/model to make money.

    The second one is they have to find a way to make money rather soon.

    The third one is they have yet to figure out a way to make money and some value the company by millions or billions??

    The fourth one is…., well you get the idea.

    Now I need a break.

  9. Twitter can’t survive on its own, but for the right company, Twitter could be a valuable asset. My guess is that the wrong company will buy it, pay too much for it, and get blamed for killing it when the fad passes or gets supplanted by the next thing (or simply Facebook).

    For Apple, they’ve got so much money, that it’s not a question of whether Apple could get a return on the investment, but rather does Jobs & Co. want to use Twitter to further other objectives.

    To this end, Twitter could be very valuable to Apple. Imagine Apple as the dominate media *and* news hub (that’s not to hard to do), for this, Twitter could fit in as a system for people to get updates not just from twatters, but from actual legitimate news and media sources. Apple could provide a interface for creating personalized channels of content delivered via Twitter and create an offering to content providers that includes millions of users already, and of course, provide the best tools for publishing and consumption on their own platform.

    How much is this worth to Apple? Not much, probably just some lose pocket change; i.e., Billions.

  10. I still have a blast with people who judge business decisions of someone like Steve Jobs or other Industry leaders. Seriously now, they’re swimming in their billions and we are just consumers and tech geeks judging from our gadgets in our underwear. What you have to understand is for people in Jobs’s caliber to make a business decision, they’ve done an extensive research and have sources, advisors, and resources that we can not even dream of! You can sit and babble all you like, but the difference between their bank accounts and yours says something about your opinion vs theirs and it seems that…. Their opinion weighs more!
    Just sayin’ ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

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