The week after Easter comes with some interesting rumors and one of it is the speculations about Google is up to buy Twitter. The unconfirmed news comes from market analysis firm Briefing.com and it rises the stock price up to 4% in Thursday.
According to a report from Briefing.com the social network is hired Goldman Sachs to protect the company from two buyout attempts. One of the offer is coming from Google. This is the second time this year, after in January a similar report suggested, that the Internet search giant was up to this acquisition. But it was not confirmed or backed with more solid evidence that Google was trying to buy Twitter.
The last report also didn’t backed with further information or more convincing evidence for actually this was happened. Now Twitter has market capitalization of more than 33 billion dollars, and Google has up to 60 billion dollars cash reserve at its disposal.
Nevertheless the lack of more solid evidence for such acquisition attempts Google has expressed its appetite for the social network before. From 2009 up to 2011 Twitter was an object for bidding between Google and Facebook. The race joined by several other companies in the late offerings.
The first big offer from Google was placed in 2009 when the search company was in the late stage of buyout negotiations. The Internet giant was offered 250 million dollars back then. But Facebook join the bidding and the whore idea of buying Twitter broke up.
The second big attempt for acquisition of the social network came in February 2011. Google and Facebook again started to bid for the company, and subsequently they were joined by several other businesses interested to buy Twitter. The exact price tag of the company was not mention during those negotiations, but reports suggested it was around 10 billion dollars.
During this time Twitter has hard time to monetize its big user base, which worried the investors. Especially after the company became public in 2013. But in the recent reports showed were promising. The last annual report for 2014 shows 111% spike in the revenues to 1.4 billion dollars, but still the social network is at the red with 578 million dollars net loss.
Google was interested before to buy Twitter, but now it has to pay a lot more for this venture. It is still plausible for the Internet giant to make some offer to the social network or to its private shareholders. It can’t buy the free float shares because they are just 12% of the total shares. So Google needs to make friendly offer or try to convince the main private shareholders to buy their stakes.
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