Facebook is... trying to buy Twitter

 

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By Reuters

Posted on 25 Nov 2008 at 08:23

Social-networking company Facebook recently held acquisition talks with micro-blogging firm Twitter, according to reports.

The negotiations put a valuation of as much as $500 million (£331 million) on Twitter, which has become one of Silicon Valley's most closely watched start-ups, the Financial Times claims.

Facebook offered to pay for the acquisition in stock, the paper claims, citing a person close to the situation. But putting a value on Twitter's shares proved controversial.

If it used the $15 billion valuation at which Microsoft bought a stake in Facebook last year, it would have valued the Twitter purchase at $500 million, though that investment was seen as a high-water mark for Web 2.0.

One person close to the situation suggested that the $15 billion valuation for Facebook was at the top end of a range of values the two companies talked about, implying that a deal might have valued both Facebook and Twitter at a much lower level.

Biz Stone, Twitter's co-founder, would not comment on the talks, but suggested that the company wanted to remain independent to build on its messaging service.

Facebook and Twitter could not be immediately reached for comment.