Facebook and Google size up takeover of Twitter: report

Twitter became famous by not only providing a free service to its members but also allowing access into the API so that custom applications could be built specifically for it.  The best part is they did all of this without running ads on the site or begging its users for money.

Makes you wonder how it can now be valued at $10 billion.

(Reuters) - Google Inc and Facebook Inc, plus others, have held low level takeover talks with Twitter that give the Internet sensation a value as high as $10 billion, the Wall Street Journal reported.

In December, Twitter raised $200 million in financing in a deal that valued it at $3.7 billion. The company, which allows users to broadcast 140-character messages to groups of followers, had 175 million users as of September.

The value in Twitter is with its user base and how those users use the system.  It is a delicate balance that once disturbed could cause at least a few of its 175 million users to call foul and jump ship.

The best part of this story? The fact that none of the principles involved were available for comment.

Related Web URL: http://www.reuters.com/article/2011/02/10/us-twitt...