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Twitter Is for Sale and News Corp. a Likely Bidder, Michael Wolff Says

Posted Jul 07, 2009 12:12pm EDT by Aaron Task in Internet, Newsmakers, Products and Trends
"It's a hard environment to do a deal," but two things are almost certain to occur at Herb Allen's media conference in Sun Valley, Idaho this week, according to Michael Wolff, founder of Newser.com:
  • Twitter co-founders Evan Williams and Biz Stone will be "looking to see what deals might be available."
  • All other media executives will be "looking to see how amendable Twitter is to a deal."

To be sure, Williams and Stone have publicly stated they are not interested in selling Twitter anytime soon, and Marc Andreessen tells Tech Ticker he and other VCs aren't looking for a sale anytime soon.

But just as certainly, Twitter is the belle of Herb Allen's ball and the subject of ongoing speculation about possible suitors.

Wolff agrees Google is the "most likely" buyer of Twitter, given its deep pockets and the fact both Stone and Williams are alums of the search giant. Facebook "would sorely love to buy Twitter," he adds, but it's unclear if Stone and Williams would want to trade shares in one pre-public company for another.

News Corp. is also a likely entrant to any Twitter bidding war, according to Wolff, author of (most recently) The Man Who Owns the News: Inside the Secret World of Rupert Murdoch.

With News Corp. recently announcing major layoffs at MySpace and Murdoch telling TheStreet.com, "I blame myself" for the Interactive Division growing "out of control and really out of size," it might seem counterintuitive for News Corp. to make a big acquisition in the space.

"I think they probably have lost" the Web 2.0 wars, says Wolff. But "I think they think they can always buy their way back into it" and Twitter would be a smart addition to "their still rather formidable array of new media assets."

44 Comments

Dave Zamborsky
Dave Zamborsky - Tuesday July 07, 2009 04:03PM EDT

any chance there are rumors RM is going to buy SIRI to get it's stock price to quadruple over night? That would create more value than goog buying a profitless company and diluting is far overstated earnigns, even more, and more importantly make me some money

Yahoo! Finance User
Yahoo! Finance User - Tuesday July 07, 2009 04:13PM EDT

Glad to know there are other people who don't get Twitter, MySpace, & Facebook! I thought I read that Twitter users leave the service quite quickly, and many of those that do use it do not post many tweets.

Michael Tsen
Michael Tsen - Tuesday July 07, 2009 04:25PM EDT

I hope corporates should know that that's how those MySpace, Friendster, and Facebook lost people when they acquire them. Corporate intervention and lack of innovation! The only people who profit are those who found them. They'd be laughing all the way to the bank because they can simply make more sites like Friendster, MySpace, Facebook, Twitter, etc. then sell them again. People constantly want new social sites so years down the road, more popular sites will be out and no point buying them because people will simply lost interest on old social sites. The best bet that corporates should do is to invest startup social sites in hope they make big. lol, why spend billions when you can invest with few thousands or millions.

yogi9448
yogi9448 - Tuesday July 07, 2009 04:53PM EDT

I don't use it, I thought it was just kids chasing the latest tech bling, but alot of folks from Brian Shannon (master day trader) to Dave Ramsey (tech challenged, financial guru) speak very highly of twitter.

Ronnie Woo Woo
Ronnie Woo Woo - Tuesday July 07, 2009 05:16PM EDT

Sell now. These are all money-losing businesses. YouTube, MySpace, Facebook, Twitter. You can't make money off of the "NOW" generation because they expect everything on the internet and most other things to be free.

Marcos Cruz
Marcos Cruz - Tuesday July 07, 2009 05:33PM EDT

This is the thing, people need to stay busy otherwise the mind goes numb. i've experienced it....but tweeter is just a fad ( A fashion that is taken up with great enthusiasm for a brief period of time; a craze.) can you really see twitter as strong 10 years from now? three months ago the inventors had no business plan. and this is at the peak of their invention. Business 101 states "you must have a 1-5-10 year plan before engaging in any venture", common sence allows you to see clearly...twitter is worth alot now...someone will but it and will make profit from it for a short time...2 yrs... because the life cycle of this service has already reached the peak and it's heading on the other side of the bell-shaped curve. (case study: cnn vs. kutcher)..it made us see how pitifull we are to use a service that clearly adds no value to ourselfs. this is the million dollar comment: "pay your users and your service will be profitable for years"

frankmargel.com
frankmargel.com - Tuesday July 07, 2009 05:40PM EDT

All these networking sites are fun! What is wrong with that? Nothing...You dope! Dow continues to sell off. Look for the bears to come out strong and in force.The market is selling all this junk amid the era of bailouts, what does that tell ya? Investors may need to sit on the sidelines and hope the markets test and retest the bottom. I am guessing fair value isn't overrated and is perhaps pulling equities south. I'd like to see the dow test the March lows. That's my prediction. My crystal ball may have blown a fuse here. Later gang!

Rob
Rob - Tuesday July 07, 2009 06:48PM EDT

I closed my FaceBook page - cause I have no idea why I need it....someone asked me to be the friend and I already was...! I heard a bird fly by and I swear it was saying Tweeter.....Tweeter.....Tweeter...!

Rob
Rob - Tuesday July 07, 2009 06:53PM EDT

Well I will be darn.....I spelled it wrong.......doesn't a bird go Tweeter...tweeter.....not Twitter.....Twitter?

Pamela Anderson
Pamela Anderson - Tuesday July 07, 2009 08:37PM EDT

OMG - it's Dr. Evil!

Gene G
Gene G - Tuesday July 07, 2009 08:53PM EDT

Nothing but a propaganda tool for intel agencies...Twitter is embarrassing.

StewartIII
StewartIII - Tuesday July 07, 2009 09:14PM EDT

ChickaBOOMer: MSNBC's David Shuster Lays An Egg http://chickaboomer.blogspot.com/2009/07/msnbcs-david-shuster-lays-egg.html

George
George - Wednesday July 08, 2009 01:12AM EDT

Pump and dump. Twitter is useless so they better sell it to News Corp while they can. God, I hope they do. I'd love to see Murdock buy another piece of crap and have to eat it.

Lorraine C
Lorraine C - Wednesday July 08, 2009 01:15AM EDT

Great Rupert Murdoch owning twitter. Like Fox news will it be Fake tweets?

Yahoo! Finance User
Yahoo! Finance User - Wednesday July 08, 2009 01:18AM EDT

Twitter is for twits...

TheB
TheB - Wednesday July 08, 2009 01:27AM EDT

The headline for this article is misleading and bad. @nd paragraph says "Williams and Stone have publicly stated they are not interested in selling Twitter anytime soon, and Marc Andreessen tells Tech Ticker he and other VCs aren't looking for a sale anytime soon."....So in other words...Twitter is not for sale. Hopefully it never will be.

Lorrinda S M
Lorrinda S M - Wednesday July 08, 2009 01:53AM EDT

Like anything overusing social media applications can be a problem, but like Time Magazine I believe that Twitter will change the way we live. http://tr.im/rlgr with it's ability to engage real-time, open conversations. If I want to know how many points were scored in a game, I search google. If I want to know what people are saying about a bad call the referee just made at a major game, I go to twitter. Remember when AOL first came out and every commercial ended in "AOL keyword "? Well twitter hash tags will be their equivalent + some. Google is the natural buyer for twitter since both Evan & Biz are ex-googlers and google has quite nicely figured out how to monetize their business model already. Twitter could be another one of google's tech freebies like Google Voice, Docs & (love LookUp function) to add to it's already massive data stores about how we play, buy, live and think. This was a great story.

bierterrasse
bierterrasse - Wednesday July 08, 2009 03:16AM EDT

Twitter proved its worth in the recent demonstrations in Teheran, but what rates for valuable use of time? Just like the Michael Jackson thing, it is so easy to fall prey to the latest distraction. No offense, but there seemed to be some meaning to the folkies of the 50s-60s, like Arlo Guthrie, Peter, Paul, and Mary, Pete Seeger, Joan Baez, Kingston Trio, or the peace-love-grow-your-own bands of the 60s-70s, but Michael seemed to be lost in some futuristic pipe dream that just led us all further and further into a dreamland of impossible alienating machine-like absurdity. Nevertheless, the whole world seems to find it easier to be distracted for the moment by the most common denominator, when it seems like we should be concentrating on doing something more productive with our time rather than always staring at the tube while our brain cells atrophy on the joy drug of irresponsibility. When the Big Mac combo hits $10.00 in about 12 months, I hope it does not take 18 months for the second stimulus package to get printed in the form of fast food stamps.

PLDT Analyst
PLDT Analyst - Wednesday July 08, 2009 04:19AM EDT

Companies like P&G and Johnson & Johnson layoff people while they hire expensive outfits like Digitas, that bill them US$25 million to handle there worldwide social media.

jessica
jessica - Wednesday July 08, 2009 04:34AM EDT

Actually twitter turned out to be pretty effective for all the news agencies during the IranElection uprising. W/O twitter, there would have been no news on the ground, and w/o all the followers tweeting encouragement and outrage, perhaps the forces of fascism would have been more deadly.

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