Speculations that Google Inc (NASDAQ:GOOGL) could acquire Twitter Inc (NYSE:TWTR) are not new. But with well-placed sources beginning to see the possibility of such a deal, it may be time to sit upright and ponder the possible catalysts for such a transaction.
At the Engage 2015 conference, which took place in Prague and was hosted by Socialbakers, hundreds of social media executives drawn from around the world were in attendance. It was on the sidelines of the conference that an executive at Engage brought up the topic of possible Google-Twitter tie in a private conversation. According to the executive, who is familiar with both Google and Twitter, there is a strong chance Google could gobble Twitter. The caveat here is that the executive doesn’t currently know of any buyout talks.
Reasons for possible deal
One of the reasons the Engage executive cited could see Twitter going to Google Inc (NASDAQ:GOOGL) is the continued collaboration between the companies. Twitter inked a new deal with Google that will see tweets appear as search results on Google so that they can look more news than just tweets. The other new deal allows Google users to buy ads on Twitter through the former’s platform.
As these companies get intimate in their operations, especially on the issues of buying and selling ads, they seem to be laying down the foundation for something more serious, possibly in a buyout.
Breaking news on Twitter
The Engage executive cited the significance of the upcoming major news events as one that could highlight the usefulness of Twitter, pushing Google Inc (NASDAQ:GOOGL) to seek a deal with the company.
Twitter has become the preferred platform for breaking news. With the upcoming U.S. presidential elections and the European referendum issues in the U.K., Google will be following keenly to see how Twitter is used to break news and possibly reach out to the company if impressed by the trend it sees.
Issues like Twitter struggling to grow its user numbers and recent decline in revenue are also seen as things that could trigger its buyout.