Twitter (TWTR) & Google (GOOG) | Is Now The Time For An Acquisition?

Twitter Inc (NYSE: TWTR) | Google Inc Class C (NASDAQ: GOOG)

There has been a rumor flying around the investing space that Google is planning on acquiring Twitter. Now, I don’t know if that’s true or not; so, I won’t be speculating in this post. However, I do know that if it is true, now would be the perfect time for Google to make its move. Today, we’ll talk about Twitter and what we’ve seen from the company over the past several months, Google and the reason acquiring Twitter would be a good idea, and finally we’ll discuss why Google should act now if it plans to act at all.

Twitter Has Been Struggling Recently

While Twitter has proven time and time again that they are capable of producing profit; investors are concerned that the profitability of the social network has plateaued. This all boils down to user data. For quite a while now, TWTR has shown meager results when it comes to user data during their earnings reports. Unfortunately, the company can’t seem to come up with a plan to increase the number of new users that come to the social network and become regulars. As a result, investors have been pushing for the resignation of the company’s current CEO, Dick Costolo; a push that has paid off. Dick Costolo will be stepping down as CEO of Twitter officially on July 1st. While Costolo will be stepping down, Twitter still lacks a plan; and will most likely continue struggling for quite some time. I wrote an in depth article about Twitter yesterday that outlines the company’s inability to create and stick to a plan; what I believe is their biggest problem. To read it, click here.

Google Could Turn Twitter Around | Realizing Great Benefits In The Process

Google on the other hand is clearly a company with a plan. Quarter after quarter, the company shows what incredible management can do; believe that they have what it takes to turn Twitter around. That is, if GOOG was to acquire TWTR. The reality is that Google most likely wouldn’t have any problems at all bringing new users to the social network; and more importantly, an acquisition would be a big compliment to the company’s current business. Google survives on data. Ultimately, they want to get the most recent and relevant results to consumers when they search. Acquiring Twitter could help them do just that. After all, the micro-blogging social network is all about real time data; and with election season just around the corner, real time data is going to be more and more important.

If GOOG Wants To Acquire TWTR, It Should Happen Now

Although I’m not sure whether or not Google is interested in acquiring Twitter, I do know that if there is an interest, the company should make its move soon. With Twitter’s CEO stepping down, the company has no guidance; and with horrible planning skills, they’re probably going to have a bit of a hard time filling Costolo’s shoes. So, if Google were to make an offer now, it would be that much more appealing. Also, with all of the negative news revolving around TWTR at the moment, the stock has been falling like a ton of bricks from the Empire State Building; leading to a valuation that would give Google a decent deal.

What Do You Think?

Do you think Google will be acquiring Twitter? If so, is now the best time? Let us know in the comments below!

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