According to the New York Times Apple is seriously considering an investment in the rapidly growing social network Twitter. This investment could be somewhere in the range of hundreds of millions of dollars. With this investment Twitter, which is currently valued at more than $8.4 billion, could be worth more than $10 billion.
Apple has considered an investment in the hundreds of millions of dollars, one that could value Twitter at more than $10 billion, up from an $8.4 billion valuation last year, these people said. They declined to be named because the discussions were private.
When you consider that both Microsoft and Google have strong ties in the social networking field – Microsoft being aligned with Facebook and Google with their own social network – it becomes obvious Apple is longing for a social presence. And with Twitter and Apple working closely the last little while integrating Twitter into both iOS and OS X, it would make sense that both companies have formed a stronger bond. In fact, apparently the relationship with Apple is so prized at Twitter that the company assigned a vice president, Kevin Thau, to work with Apple full time.
On the flip side, according to The Wall Street Journal these discussions about Apple investing in Twitter are over a year old. It is even being reported that Apple might not just be interested in investing in Twitter, but a number of other social media start-ups as well.
People familiar with the matter said there are no current formal investment or acquisition discussions between the companies. Recently, Apple has met with a number of social media start-ups to discuss product ideas, according to people familiar with the matter.
Regardless of whether Apple ends up investing hundreds of millions of dollars in Twitter, one thing is certain, Apple needs to start aligning themselves with social media. As in the future social engagement may dictate how consumers spend.