Why Google Will Not Acquire Twitter

There has been considerably speculation about Google’s next acquisition. Late final week rumors emerged Google was in conversations with Twitter’s Evan Williams about a achievable acquisition. In my view Google is not interested in an all out acquisition of Twitter.

Google recognizes five variables when taking into consideration its relationship with Twitter:

1. The overlap among Google searchers and Twitter registered users is considerable. With close to 80% of the US search industry, Google can acquire and reach/monetize those exact same Twitter customers through other much more expense helpful channels.

two. Google’s social media record is poor – it is unlikely Google would know what to do with Twitter in spite of its acquisition of YouTube. In addition, Google Buddy Connect, at the heart of the search engine’s social media efforts, is completely integrated with Twitter, permitting Google Buddy Connect websites to integrate Twitter content material and customers.

3. One of Google core UPS is top quality and speed of indexing. What Google wants from Twitter is a genuine-time feed of updates to speed indexing. At present Google need to independently index each and every Twitter user periodically to appear for updates. This procedure is slow and expensive.

four. Google can establish a (risky but potentially lucrative) advertising partnership with Twitter. As reported by Adage Google was testing incorporating Twitter streams in AdSense units. Google has developed particular AdSense ad units that pull the five most current Tweets from TurboTax’s Twitter stream. TurboTax anticipates that the campaign will raise people’s awareness that the brand is listening and talking to their consumers. Will it work? Time will inform.

five. Google is diversifying into the VoIP and communications segment. GrandCentral, a telephone management service acquired by Google for $ 50+ million in 2007 is at the core of their technique. Following months of modifications Google has released Google Voice. Google Voice proposition is basic – “1 phone number for all your phones, for life.”

As opposed to developing the service organically, Google will acquire Skype. eBay’s recent announcement it plans to spin-off Skype (following a $ 1.4 billion write-down on the deal) supplies Google with a exclusive opportunity to speedily accomplish vital mass within the P2P VoIP segment. The integration of Skype mobile into Google Android and Skype Organization into Google Apps would give a substantial increase to Google’s efforts to integrate VoIP into its staple of current solutions. On the other hand, what Google has in reach, Apple has in community. Apple’s iTunes is possibly the only platform exactly where an integration of Twitter tends to make any sense.

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