Why Google Inc (GOOGL) Should Not Buy Twitter Inc (TWTR)


In an article on BI, Matt Rosoff said that there the rumors are swirling around that Google Inc (NASDAQ:GOOGL) wants to buy Twitter Inc (NYSE:TWTR). Google has been trying to buy the little blue bird since years but Twitter is not interested in this deal. Google Inc (NASDAQ:GOOGL) launched its own social media platform to fight Facebook, but failed pretty badly. It is currently in direct threat from Facebook’s video ads and ads endeavors. The source said that Facebook has played its moves perfectly and has done better than any other tech company of today. Google Inc (NASDAQ:GOOGL) is striving hard to tackle Facebook’s advances, but failing to get any success.

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But Google Inc (NASDAQ:GOOGL) will have to rethink its wish to acquire Twitter Inc (NYSE:TWTR). Twitter is worth around $33 billion Add premium and extra costs, the acquisition cost could touch $50 billion, whereas Google Inc (NASDAQ:GOOGL) has around $64 billion cash. This would be a close call and the risk factor is also huge. The source said that antitrust regulators, tax issues, integration costs can add up to make this acquisition a constant nuisance for the search engine giant.

But Google Inc (NASDAQ:GOOGL) could shut down its Google Plus platform and focus all its efforts on Twitter Inc (NYSE:TWTR). It could funnel its social media ads strategies on Twitter to tackle Facebook. Rosoff said that the ship sailed for Google Inc (NASDAQ:GOOGL) in 2009, when Twitter Inc (NYSE:TWTR) was worth around $1 billion and ripe for acquisition by the search engine giant.

 David Tepper’s Appaloosa Management Lp owns around 600,000 Google Inc (NASDAQ:GOOGL) shares.

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