As per a Friday's report
from the New York Times, Apple
Inc.(NASDAQ:AAPL) held discussions about the possibility of making investments
in Twitter Inc. The company had been talking to Twitter Inc. for more than a
year now to make strategic investment in the short messaging service. This investment
tactic to the tune of hundreds of millions of dollars and to gain a social
networking presence comes as many technology giants were playing catch-up in
social media. Apple Inc. which has at one point had mulled an investment that
would have valued the microblogging service at $10 billion but the companies
were not negotiating now.
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Apple
Inc.’s decision to invest in Twitter Inc. impelled an outbreak of activity by
some of the established players in the market who suddenly found themselves a
step behind a big digital trend. The iPhone maker which has, as of now, never
probed into social media dominated by Facebook Inc, would face common rivals
such as Google Inc. and Facebook Inc.
The
dynamics of the tech-industry have been seen shifting with the ending of the
partnership between Google Inc. and Twitter Inc. for featuring Twitter messages
in the Google search result and the discussions between Facebook and Apple over
meshing the social network into the iPhone's software falling apart. However,
last month witnessed the announcement from Apple Inc. to wrap the social
network into the iPhone's main software for the first time. Even the discussions
between Apple and Twitter didn't immediately result in a deal.
Despite
of the rising investor worries about the disconnect between business fundamentals
and valuations at hot companies in the broader Silicon Valley market, the
Apple-Twitter relationship remains strong even without a strategic investment
stake. In fact, word of the talks coincides with people having starting
wondering whether expectations for the potential of social media companies had
gotten out of hand, and shares of Facebook, Zynga and other companies have
wilted. However, people close to Twitter report of ahead 2012 revenue
projections that were laid out last year. Twitter is set to gain$259.9 million
from its ad business this year, eMarketer Inc. projects.
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Being
logical partners in certain ways, Twitter would continue to mesh its
short-messaging service into iPhone and iPad and several other Apple products,
which are responsible for a big chunk of Twitter use. For its part, Apple has
woven Twitter into devices such as the iPhone and, more recently, the Mac
computer.
Twitter
executives have expressed admiration for Apple and continue to see the company
as a natural ally against Facebook and Google.
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