Twitter Inc (NYSE: TWTR)
First off, I’d like to make it clear that there isn’t a rumor that Google will acquire Twitter and neither company has even insinuated that this may happen. Nonetheless, in my opinion, that’s exactly what should happen. Here’s why…
Let’s Start By Thinking About How Google Makes Money
We all know that Google’s core business revolves around search and the ads within their search engine. With that said, Google’s goals are relatively simple to understand. In order for the company to grow, they need to focus on making their search engine more popular, and driving online ad revenue from partner websites.
There’s no doubt in anyone’s mind that Google has done a great job so far. After all, we are talking about the world’s most popular search engine; one with an incredibly massive user base. They’ve done this by ensuring that quality results show up fast, knocking out spammy results, and continually improving the experience for users when they search. So, where does Twitter come into all of this?
Acquiring Twitter Could Be A Great Way To Grow Google
OK, so in the world of social media, Twitter seems to have hit a plateau around 300 million users; which is nowhere near the size of Facebook. Nonetheless, the social network is known for one thing that can be incredibly valuable…real time micro-blogs. This is likely to come in handy very soon. With presidential elections coming soon, one would imagine that campaign managers will be hitting Twitter pretty hard in an attempt to get their message out quickly. With all of that said, Twitter could give Google a real-time element with regard to search; ultimately giving more and more users a reason to use the search engine just in time for the next presidential elections.
Another big factor that we need to take into account here is local search. The reality is that more and more users are looking to Google for local search results; and while they are good, they’re not perfect; at least with regard to advertising. When advertising locally on Google, companies simply don’t have the re-targeting abilities that they can get elsewhere. However, Twitter’s local engine is powered by Foursquare check ins. As a result, their local ad system could bring quite a bit of value to Google’s local ads.
Now Would Be Perfect Timing
As mentioned above, presidential elections will likely prove to be a catalyst for Twitter as campaign managers use the system to get their message out. Also, it’s important to look at Twitter’s value. Chances are that Google may not be able to get such a great deal if they wait. After all, if the catalyst does send Twitter’s stock price up, Google could miss out on savings. So, not only is it a good idea for Google to acquire Twitter, it’s also a perfect time to get the acquisition rolling…I wonder if the guys and gals at Google have thought of it. Nonetheless, if this is something that’s in the plans, it’s definitely being kept under wraps. However, I wouldn’t be surprised if a Twitter acquisition is the next big move for Google.
What Do You Think?
Do you think Google should acquire Twitter? Let us know your opinion in the comments below!