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Should Google Buy Twitter?

October 8th 2010 04:39
The rumor that Google would soon buy Twitter to fight Facebook is one of the oldest running tales told by gossips who claim to have secret knowledge of the ambitious plan. Across the tech world analysts and pundits are torn on whether Google should buy twitter to compete with Facebook in the social media market. Twitter is one of the fastest rising dot com in history next to Facebook. It has created a strong mainstream buzz. For the past few years we have seen lots of changes in Twitter, the company is awesome, its users’ growth is impressive. It has now more than 145 million registered users, with mobile users jumping 62% since April after Twitter began offering its own mobile applications for iPhone, BlackBerry and Android based phones. With 145 users on board, it got strong revenue potential. And its going mainstream, the company stands to be the next advertising cash cow. Twitter already disrupts everything in the web including Google and Facebook. The disruption make it’s a potential tech target for Google. It could next to Google’s shopping list.

We have heard it many times, that every major players in the web like Google, Microsoft, or Yahoo, wants to build the next great platform, what’s new here is that it’s possible for any of them to succeed. Apple, Google, Facebook, and Microsoft all want to build a web empire. In many ways these companies are technology’s standard bearer, though their guiding philosophies differ. Google advocates an Open web and tend to push for open standards and alliances among developers. No company on Earth has done a better job of aligning its business plan with the web, earning Google its massive $200B market cap. Its project are built to be hacked, making it favorite of third party developers, it has a billion dollar war chest giving the company plenty of room to experiments. With $24 billion plus a year in advertising revenue, you would say Google is just doing fine. But the reality is Google got tough competition, so tough that the company’s core business was threatened. The company has been experiencing disruption for the first time. That threat is Facebook. Zuckerberg’s brainchild has taken the web by storm, it was leading a once in a century revolution. Users’ growth remains impressive, with sign of slowing down. Since September 2006, when Zuckerberg opened Facebook to nonstudents, that was in Harvard. The site has grown 12-fold, making it one of the fastest rising dotcom in history. Facebook has garnered more than 500 million plus users in just 6 years! Visitors tripled after Facebook expanded internationally, and they continue to spend more time on the site. Last August the social network surpassed Google in total minutes users spent on the website. This makes Facebook a serious threat to Google’s online business. Google, which is twice as old as Facebook, (Google is just 12 years old) has more than 1 billion searchers, but these users come to its search engine for a quick information fix unlike Facebook, with all its content sharing (FarmVille, Ninja Saga, Mafia Wars) and communication tools, is sticky, that low barrier to entry and stickiness make Facebook a tantalizing proposition for social media advertisers. And this sound trouble for Google. Facebook is about to steal the spotlight away from Google. Adding to this threat is that Facebook is fast becoming accessible from any devices, anywhere, anytime, it’s everywhere.

Google has relied on an open internet to make its entire business, that’s their staple and cash cow, that’s their field of expertise and that’s what their business has built-on. It has a genetic predisposition for openness, Google’s core business, search, depends on openness. Google can’t find the things users’ want on the web- documents, music, images, videos, and so on- unless they are open and accessible. Google has a business plan that depends on the web being used by as many people as possible, that’s their lifeblood. That’s the reason why the search company spends so much time and resources building new applications that make the web more useful. Social network like Facebook is a threat to that business; users tend to stay within their network and communicate among themselves or simply fool around with applications. When Facebook’s users are playing FarmVille or tagging photos, they’re not using Google. Indeed, they’re more likely to discover new things via friends or in network applications such as Mafia Wars. Facebook is great and popular; anybody in the tech world would love the opportunity to troll around the Facebook site. And it’s already caught the eyes of some of the web’s major players. Everyone would like to work with Facebook. Just like the recent news about possible VOIP deal between Facebook and Skype, the deal will boost Facebook’s communications quotient, thus threatening Google’s VOIP service. Facebook has made its presence felt in the web, and Google has now started to feel the heat of the competition. Analysts predicted that Facebook value could worth $33 billion on paper and its IPO (Initial Public Offering) could be the next hottest meal ticket.

Google is laggard in social networking. It has its own network called Orkut, which is big only in India and Brazil. So we can say that Google has really fallen behind in the social media market game after launching Orkut, Google need to do something here, its Google Social Search and other services, needs to do something big, it not steal some of Facebook’s magic temper. Google must take now aggressive measures before it’s too late. The worst thing might come that Facebook would soon build a search applications, that could siphoned some search revenue away from Google or even replace the browser and desktop for some people, slowing down Google’s growth. The most favorable thing for Google is to make some strategic acquisitions to boost its presence in the social media market. And Twitter could be a Google’ perfect tech target. I think that Google should scramble now to bid for Twitter, Twitter will give Google the tools it’s needed to compete with Facebook in social media market. Twitter is a “must” buy for Google, it give the search engine much credibility in social media. Twitter is the only company in the web that could match Facebook’s buzz in the social media space, it has the same level.

For the past few months we have seen Google building up its social media arsenal with smaller acquisitions such as Slide, Jambool, Angstro, and SocialDeck. The massive build up of Google’s arsenal could help the company in its fight with Facebook. Those companies makes technology that helps unlock the power of social graph, which is industry parlance for adding social content to other web services but these companies are just another ingredients in the social network effort called “GoogleMe” which the company is moving at high speed to launch, the company is adding social firepower to battle Facebook. Did Google miss something? If Google want to stay in social media market it needs to add something big to its arsenal. And that could be Twitter. Twitter’s platform could marry well with Google’s powerful advertising delivery infrastructure and might fit well into their plans to expand their dominion over social media market. Plus Twitter strong revenue potential, I say this that Google should buy Twitter now, it’s could stand as an advertising cash cow, it already proved itself that it can monetize. If Google is looking for growth and a chance to fight Facebook in the social media space, then Twitter could be the best answer. I strongly believe that Google still has the time to prove it merits in social media. The company is facing real problems- asocial media credibility problem. If you have a scenario like this I think it would be better if you buy Twitter now. Google needs to fight Facebook or risk sponging the crumbs off of Facebook’s social networking table.

Twitter will not just help Google battle Facebook, it will also provide Google some additional revenue, I’m sure it will works Google has enough advertising talent to find additional ways to monetize Twitter. The Facebook’s threat must stop, if Google is to stay at the top of the food chain and leader of all internet ecosystems, then it needs to bulk up, and buying Twitter would make a lot of sense, and if Google wants to topple Facebook then it too, would have to make sizable investments like buying Twitter. When you’re a falling giant, you’ll grab someone’s hand for help, Oracle just demonstrated that in pairing with Sun Microsystems. Why shouldn’t Google follow suit and hook up with Twitter, to combat their common conqueror? Facebook.


for more see:
Netcrawl

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