There has been much speculation that Google’s is trying to, or is on the brink of, acquiring the uber popular Twitter social networking tool.  Google have been quick to play down the speculation, even going as far as to say it is “unlikely” to happen add that they would be keeping their revenues in “extremely secure banks”.  It could be argued that “they would say that wouldn’t they”, trying to keep the potential acquisition price down. The fact that previous Google acquisitions such as Youtube, which have failed to become profitable, could mean that the search giant is calling everyone’s bluff.

Seeing as Google has largely missed the boat when it comes to social networking, a purchase of Twitter would seem like a logical step for the company.  Shareholders will be anxious that Google has devised a strategy of how it could make money from the Twitter platform, given that they blew $165 billion on buying Youtube. The most obvious way would be via Adsense on Twitter user profiles.  But the value of advertising on social networking portals in questionable given the trouble facebook has been having in trying to generate ad revenues.

Some have argued that it will become the most prominent search portal for news, discussion and comments and so traditional Pay Per Click style ads will in fact be one of the prime generators of revenues. Others have stated that Twitter is in fact a greater threat than established search engines such as MSN and Yahoo.  And with 10,000 new members a day, who would argue with that premonition?  With just 140 characters per Tweet, the results will certainly be a niche offering, different to other more orthodox news results.  Of course they will be real time as well, and draw from a much wider audience. The potential is huge no question.