Rumors claim that Twitter management is currently in negotiation with Google over a potential takeover of the social media company by the search engine giant.
According to Seeking Alpha, Twitter is currently looking for potential acquirers. And a potential takeover of Twitter by Google makes sense, since Google engineers believe that more real-time data could improve the search engine results. Especially during those moments of breaking news, Google's search results feed based on Twitter data analysis could prove very useful.
On Friday, Sept. 23, following news that Twitter's management is currently in conversations with potential acquirers, shares of social media company went up by 21 percent. Several publications, including CNBC, reported that Twitter is currently in negotiations with Google and Salesforce. There were also speculations troughout the day Friday that other companies including Microsoft, Viacom and Disney may be interested in making a bid for Twitter.
Shares of Twitter had been down over the last year by around 20 percent. Investors have been avoiding the once beloved social media company due to human capital errors, slowing growth and a lack of enthusiasm.
While Twitter is struggling to monetize its user base, the social media network does have an impressive number of over 300 million monthly active users. A huge amount of real-time data is generated by these users.
For some time now, it has been speculated that Twitter could be for sale. To a larger company such Google, Twitter's wide amount of data could provide more value than its ability to generate revenue via sales of ads. For this reason, some market analysts are very confident that Twitter will end up being acquired by Google. According to Tech Crunch, an eventual takeover of Twitter by Google would also benefit YouTube that lacks short-form, frequently updated content.
In fact, back in the year 2015, Twitter and Google entered into a data sharing partnership, according to Search Engine Land. This agreement between the two companies gives Google access to crawl and index more efficiently up to thousands of Tweets per second.
