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Google Inc -Twitter Inc Merger Talk: Several Relevant People Agree On “Twoogle”

Several important people in the social media industry seem to agree that Google’s acquisition of Twitter would make sense.

For some time, rumors have been crossing the wires that Google Inc (NASDAQ:GOOG) may acquire Twitter Inc (NYSE:TWTR). The idea of “Twoogle” has emerged, which is being made increasingly credible by some of the important people in the social media industry.
Recently, Twitter's investor Chris Sacca said in an interview to CNBC that the social networking site can be an “instant fit” for Google, since he believes a popular social media aspect is something missing from Google’s portfolio right now. Despite being one of the biggest shareholders at Twitter, Mr. Sacca has been vocal about the company being a disappointment to Street analysts “more often than not." The site’s monthly users in the first quarter of fiscal year 2015 (1QFY15) came up to be 302 million, nearly one-fifth of the 1.44 billion active users at Facebook Inc (NASDAQ:FB). Mr. Sacca further said that almost 1 billion people, who began using Twitter, failed to stick. Twitter stock has plunged 28% since late April, and has been up only over 3% since the start of 2015.

Mr. Sacca maintained that if Twitter does not stop “playing defense” in its earnings calls and work to improve its services, it will be a matter of time before tech giants such as Google, Facebook, and Microsoft Corporation (NASDAQ:MSFT) close in for a kill.

Commenting on Mr. Sacca’s revelations in a separate interview to Bloomberg, Bloomberg's digital editor Joshua Topolsky and Indian-American web and technology writer Om Malik seemed to be on board with the idea of Twoogle. According to Mr. Topolsky, a Google-Twitter merger makes complete strategic and financial sense. Google can be a “safe haven” and a “cushion financially” for Twitter, while at the same time benefit from the social media aspect of the networking site.

According to Mr. Malik, the merger seems to be “the most viable option [for both companies] from an investor standpoint.” Expanding on Mr. Sacca’s recent 8,500-word memo on Twitter, Mr. Malik said that the site needs more ways to create human interactions using better data-mining techniques and take on more risks. He maintained that Twitter’s product value has not gone down and just needs a little revival.

Business Insider also reveals, citing sources, that when Yahoo! Inc. (NASDAQ:YHOO) CEO Marissa Mayer was an executive and key spokesperson for Google, she believed that the search engine would benefit from Twitter's acquisition.

Jan Rezab, CEO of the social media analytics and publishing company Socialbakers, also expressed full support for Twoogle in a tweet posted last month. He remains one of Twitter’s largest advertising clients.

It’s not certain, however, if the proposed transaction between the two tech giants will actually materialize. Currently, Twitter’s board includes the company's two founders and CEO Dick Costolo, who maintain that Twitter remains the most viable real-time link to news and events happening around the world. This makes almost half of Twitter’s board unwilling to relinquish the company's control anytime soon.

Nonetheless, a Google-Twitter merger does make sense, given the potential catalysts to Twitter stock coming up in the short-term. Presidential elections in the US and the European Union referendum in the UK are two big upcoming events in two of the largest markets for the social networking site. Twitter will be bursting forth with billions of tweets sparking debate on the events, making it a very relevant platform through November 2016.

Recently, Twitter also signed a deal with Google to allow the company to showcase real-time tweets as search results and enable ad clients to purchase ads on Twitter through Google’s Doubleclick buying system. It is speculated that the partnership is a part of Google’s test-run to see if Twitter is worth acquiring after all.


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