Rumors are flying around about Apple investing strategically in Twitter.
Apple Is Said to Discuss an Investment in Twitter - Evelyn Rusli and Nick Bilton via NYTimes.com
Apple doesn’t have to own a social network,” Timothy D. Cook, Apple’s chief executive, said at a recent technology conference. “But does Apple need to be social? Yes.”
Twitter and Apple have already been working together. Recently, Apple has tightly sewn Twitter features into its software for phones, tablets and computers, while, behind the scenes, Twitter has put more resources into managing its relationship with Apple.
Though an investment in Twitter would not be a big financial move for Apple by any stretch — it has $117 billion in liquid investments, and it quietly agreed to buy a mobile security company for $356 million on Friday — it would be one of Mr. Cook’s most important strategic decisions as chief executive. And it would be an uncommon arrangement for Apple, which tends to buy small start-ups that are then absorbed into the company.
But such a deal would give Apple more access to Twitter’s deep understanding of the social Web, and pave the way for closer Twitter integration into Apple’s products.
Twitter has grown quickly, amassing more than 140 million monthly active users who generate a vast stream of short messages about their lives, the news and everything else. An Apple investment would give it the glow of a close relationship with a technology icon, and would instantly bolster its valuation, which, like that of other start-ups, has languished in the wake of Facebook’s lackluster market debut. In fact, word of the talks comes at a time when some are asking whether expectations for the potential of social media companies have gotten out of hand, and shares of Facebook, Zynga and other companies have wilted.
Apple should take $20B and buy Twitter.
Twitter otherwise could spiral off into being a media company, pouring its energies into competing with HuffPo and Mayer’s Yahoo. Or worse, being acquired by Yahoo, AOL, or Microsoft.
Apple needs to bake social into a future version of all its OSs, before Google does.