Some merger action between Google and Twitter is looking more likely as the two companies are consulting with third parties over a possible acquisition. The two giants have collaborated in the past, and Google lacks a social media presence with which to compete with Facebook.
Google is still pondering making an offer for Twitter. Bloomberg reported on Friday (Sept. 30) that Google is consulting with financial adviser Lazard Ltd. over a possible deal with Twitter, but neither entity is corroborating the rumors.
After Salesforce expressed an interest in acquiring Twitter, the social media firm requested Goldman Sachs Group Inc. and Allen & Co. to solicit buyers, according to Bloomberg. After an earlier collaboration failed between Google and Twitter, the latter recently agreed to work with Google and integrate its content inside Google search results. Google’s previous foray into social media products, Google Plus, failed and left the company unable to compete with its primary ads competitor, Facebook.
Google’s recent focus, under Chief Executive Sundar Pichai, has been on artificial intelligence and cloud storage, not social networks, whereas Twitter has had stagnant growth for over a year but has recently focused on video and live events.
Lazard served as the financial adviser for Google’s $625 million takeover of software developer Apigee in September. The deal should close by year’s end. The news of Google’s consultation with Goldman Sachs Group Inc. and Allen & Co comes amid rumors that the giant is considering an offer but has provided no confirmation. Twitter also has not confirmed that it is seeking a buyer.
According to a statement by Twitter Cofounder Ev Williams made to Bloomberg in August: “We’re in a strong position now, and as a board member, we have to consider the right options.” Other potential big-name bidders for the social media giant include Salesforce and Walt Disney.
Neither a spokesperson for Google nor Lazard was available for comment.
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