Google, one of the most powerful companies in the world, has a history of making valuable acquisitions. Many experts, most recently chairman and CEO of Davis Rea, John O’Connell, suggest that it would not surprise them if Google purchased Twitter in the future.
“I wouldn’t be surprised if they bought Twitter at some point. It would make sense to me,” said O’Connell.
How much would it actually cost to buy the thriving social networking site? In January of this year, Robert Peck, an analyst with SunTrust Robinson Humphrey, suggested in a TV interview that one would have to pay “north of $40 billion” for Twitter. He also said that it would be a difficult, though not impossible, deal.
Google and Twitter have a friendly history. This February, the two companies made a deal that grants Google access to Twitter’s nearly 9,000 tweets per second to be indexed into Google’s search results. As well, Google can use “real-time” commentary on news as it comes from Twitter. The deal benefits both parties, as Twitter now reaches a larger audience than Facebook through this partnership due to Google’s four billion plus searches a day.
Although there is no official report of Google purchasing Twitter, it certainly would not be a bad business move. Could this prediction be a real transaction somewhere down the road?