Thursday, April 2, 2009

Google to acquire Twitter, for real?

The blog community seems to be saying that Google is in talk to acquire Twitter. By the way, not too long ago, Twitter turned down a half-billion deal from Facebook.

Twitter is a fascinating business and service. It's a simple service. People of all ages can quickly learn how to use it. To some it's an addictive communication and mind-broadcasting tool. However, while Twitter interests many people, but it doesn't really make any money as a business. The question here is why would a search engine company Google want to buy Twitter?

Google is a company that makes money by getting people to pay attention to their online products, e.g., search engines, gmails, news, blogs. The more people they can attract to their online "real estates", the more revenues it will generate from online advertising.

Blogger.com is an good example. It's a platform that attracts visitors, both publishers and readers. While publishers host Google Ads on their blogs, readers click through ads embedded in the blog posts. Blogger.com doesn't charge people for its service. It's free to publish and free to read. But, it helps Google to distribute advertisements and generate ad revenues.

I think Twitter is like Blogger.com. It's a platform for generating extremely high traffic and for distributing advertisements to a vast population. If Google does acquire Twitter, it's not because Twitter is cool, but because it's the new Blogger.

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