During Charlie Rose’s interview with Google CEO Eric Schmidt, the topic of future acquisitions comes-up. Of course, many of us expect Google to acquire Twitter. Schmidt explains:
I shouldn’t talk about specific acquisitions. We’re unlikely to buy anything in the short term partly because I think prices are still high. And it’s unfortunate I think we’re in the middle of a cycle. Google is generating a lot of cash. And so we keep that cash in extremely secure banks.
So there you have it! Google will acquire Twitter!
I know, I know, Schmidt didn’t actually say that, but since when does Google ever clearly express its intentions? "No intention," "unlikely," and "no plans" are all standard issue for Google’s executives and time after time the search engine proves that it plays word-games with the media.
As Mark Evans explains, there are plenty of good reasons for Google to acquire Twitter–the top reason is Google’s ability to place AdSense ads in your Twitter stream–but there’s an even bigger reason why Google should, nay must, acquire Twitter.
Twitter is becoming an important communications channel–intrinsic to the web. Aside from the being able to pick up the company for a fraction of the $15 billion Google has in cash, Twitter is a key component of the search engines’ ambitious goal: to organize the world’s information.
Don’t believe Google’s slight-of-hand talk about the timing not being right. The timing is perfect! While other companies pull back on spending–causing Twitter’s valuation to drop due to lack of interest–Google can fly in under the radar and pick up perhaps the most important internet start-up since Facebook.