Social networking site Facebook to try to 500,000,000 U.S. dollars to buy shares in the form of micro-blog Twitter, and the two sides have been negotiating for several weeks. If the success of the Facebook acquisition Twitter, will become the Facebook deal in the history of the most important mergers and acquisitions. Unfortunately, Twitter can not accept the offer of Facebook.
Facebook and Twitter reason for the breakdown of negotiations between the most likely reason for this is that valuation is too high. In other words, the so-called 500,000,000 U.S. dollars Facebook shares 500,000,000 U.S. dollars really worth it? In addition, a similar acquisition will usually have a problem of integration, and related spending is one of the issues to be considered.
However, more importantly, I am afraid of is that, Twitter’s management and investors that the company will still have the ability to continue to grow and income generation. Despite Twitter is still no source of income. However, according to an informed understanding that despite the threat of economic downturn, but Twitter is still full of confidence for income generation. Although the Facebook has a very strong social network, but in the “status update” in the field of innovation and not Twitter.
