Twitter Buyout In 2013?

Peter is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.

We could be seeing some big headlines later on in 2013, an acquisition of Twitter…but to whom??

The companies that make the most sense to me are Apple (NASDAQ: AAPL), Google (NASDAQ: GOOG) and Facebook (NASDAQ: FB), which could possibly buy up the social media giant! But which one makes the most sense right now?

Let’s start with Apple… it’s obvious that they have enough cash to buy Twitter up whenever they want to, but would they pay up? If you were looking at their track record, you would say no. But, Steve Jobs is not in charge anymore. The times of having no major acquisitions could be over if Twitter entices Tim Cook enough. Personally, I think Cook would be willing to make the move…he’s already introduced dividends, and Jobs was obviously not willing to do that during his time. So why would shelling out 5-10 billion be any different?!

Apple already has the iPad, iPhone, and Macs to immediately implement Twitter if they decide to make the move. The way all of their devices are currently connected to each other is mind blowing, and if they could figure out a way to weave social media into their products, it could be the next jump Apple needs to take to separate them from competitors.

Currently at the University of Oregon, students are using Twitter to communicate with fellow classmates to provide help on homework or if somebody missed class to share what went on. They do this by creating hash tags, and it is becoming a huge hit by how easy it is! Apple already knows that college students drool over their products, and what an opportunity they have if they go after Twitter now. I can see it now, Apple + Twitter changing the way education moves forward in the next five years…

How does Google fit with Twitter? Well, they have already tried their own social media aspect, Google+, and that has not worked out for one second! I do not know anyone who ever signed up for it and who currently uses it. But, that is not the point, the point is, is that they have tried to get into that business, but failed. Who says that they still don’t want to get back into it? They certainty have the cash to buyout Twitter, but would they make that move? Sure, they acquired Motorola for billions and look at what they’ve done with them?! Nothing! That doesn’t say they don’t have plans for the long term with Motorola, but in the short run it doesn’t look that way. Twitter is no different in my eyes; they could acquire them for ‘X’ amount and sit on them for a little bit before they introduce how they will be used.

A way I could see Google using Twitter is by implanting a similar system I have with how Apple could use them. I could see them having a separate search, for example how they currently have ‘Google Search’ and ‘I’m Feeling Lucky,’ they could have another one named ‘Hash-Tag’ and you search by certain hash tags. Students could create hash tags for their classes, and every student could get involved outside of the classroom.  This obviously is not limited to just students, but anyone could create hash tags and connect with other users with similar interests.

Facebook is an interesting prospect, since they are a social media giant themselves … how can it possibly work out?! Let’s take a look…

The big blue (Facebook) is known nowadays for their creative ways to put as much information/news on your newsfeed. Now, that can be seen as a positive if your wanting to know as much information about your friends as possible… or a negative if you don’t want to know everything, and just the basic news (status updates). What is so frustrating about this aspect of Facebook is that there is no way to change what is popping up on your newsfeed…. you get what you get. This is where I can see Twitter coming into the picture…

Twitter provides its users with a clear picture of what they are getting when they sign up. You only see information of people you follow and the re-tweets. This is where Facebook can take a page out of Twitters business model. Facebook as gotten away from allowing you to have a personalized page, they made everyone change to timeline and are implementing cover photos. I know personally, I don’t like any of those things…. I just want the basics.

Facebook could implement a system known as ‘Group Hash-Tags,’ and allow users to turn their profiles from seeing what their friends are doing, to what their friends are doing under a hash tag. This all comes back to connecting with people/friends that are interested in a similar subject. It would also be used outside of the classroom and allow you talk to friends about what went on in class, or what to expect on the next midterm.

Twitter is a very valuable asset, and I could see them bringing extreme value to one of these companies later down the road in 2013. Keep your eyes peeled for the day to come!


pnitso has no position in any stocks mentioned. The Motley Fool recommends Apple, Facebook, and Google. The Motley Fool owns shares of Apple, Facebook, and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!

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