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Why Microsoft Needs to Buy Twitter

Silicon Alley Insider's Nicholas Carlson offers five reasons why Microsoft, which is sitting on a pile of cash, should offer "whatever it takes" to buy Twitter. Most estimates peg the microblogging site's value at between $700 million and $1 billion.

For starters, Carlson says that Twitter has created a new and exciting type of search-real-time search, whereas Microsoft search (now called Live Search) has been a total flop. A Yahoo deal, which now looks likely, would certainly help, but it won't grow the way that Twitter is growing, Carlson says, but he warns that integrating Twitter into Live Search would be a bad idea, as Microsoft needs a place that people actually go to search. Lastly, Carlson says that Twitter will soon become that much more expensive, as soon as it taps its revenue potential.

Meanwhile, Kara Swisher reports that Microsoft's business development team is currently trying to find a valuation for Twitter. The bad news for Microsoft is that it will likely have to significantly overpay to acquire the microblogging service, as any offer from Microsoft can be easily matched by Google, which is also sitting on a pile of cash.



Read the whole story at Silicon Alley Insider »

2 comments about "Why Microsoft Needs to Buy Twitter".
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  1. Matt Riker, May 7, 2009 at 2:16 p.m.

    Twitter is like a breath of fresh air on the Social Media scene. I have been on it for just a few weeks now and I have met several interesting people. It is a platform to network with people you would like to meet in real life.


  2. Micah Touchet from NewBirth Creative Design Agency, May 7, 2009 at 5:49 p.m.

    This is all we need -- an emerging social networking / search phenomenon to get screwed up by a bungling, out-of-touch corporation like Microsoft.

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