Twitter says 'no' to Facebook acquisition

Twitter has become a worldwide phenomenon with nearly every tech savvy person out there using it, you constantly hear among the technology circles "hey I tweeted that" or "yeah I read that on Rappy's twitter" so it would come to no surprise that someone will want to acquire them.

Every 6 months or so, Twitter asks many companies to help fund their next year and if you look at their total funding it amounts to a very helpful $20 million. Another selling point for Twitter would be the user base. When Twitter first started it was only a few hundred users that would post their statuses and it was a small easily run company, now it boasts a total of around 6 million people registered users and recently hit the 1 billion tweet mark.

So who recently put their offer to buy Twitter? Facebook, which in some circles would be no surprise as recently their remodeling of the front end of Facebook has seen the addition of a status posting tool which strikes a very similar purpose to Twitter. Facebook is a highly sought after company themselves (recently being looked at by Microsoft) but it wouldn't hurt to have a company or two under their portfolio and their funding would certainly allow them to buy Twitter, but the price talked around was near $500 million (with $100 million of that in cash and the rest in stocks).

Talks were recently held between Facebook and Twitter but broke down when the actual price of Twitter's stocks weren't agreed on. Another factor in the breakdown was the revenue potential of Twitter, seeing as they currently don't have advertisements on the site, no revenue is currently being generated.

Don't forget you can also follow Neowin on twitter.

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