A report by the New York Times, on Friday, renewed speculation that Apple is considering a strategic investment in the popular micro-blogging service, Twitter.
The report claimed Apple is looking to improve its standing in the social media space, and cites unnamed sources as saying Apple considered an investment of hundreds of millions of dollars in Twitter, and that the companies have been in talks in recent months.
“There is no guarantee that the two companies, which are not in negotiations at the moment, will come to an agreement. But the earlier talks are a sign that they may form a stronger partnership amid intensifying competition from the likes of Google and Facebook,” says the report.
The Wall Street Journal has countered the New York Times report, stating that the “talks” actually took place over a year ago, and were fruitless. The Wall Street Journal states sources close to the matter say the talks aren't currently active.
Apple CEO Tim Cook has been widely quoted as recently saying: “Apple doesn't have to own a social network. But does Apple need to be social? Yes.”
With the introduction of iOS 6, Apple announced a partnership with Facebook to deeply integrate the social network into its mobile software (this is together with the existing Twitter integration). Twitter and Apple are, however, still viewed as likely allies in the face of increased competition from Android and Facebook.
Back in 2009, rumours emerged that both Google, and then Apple, were in “late stages of negotiation” to buy out Twitter. Even Facebook was said to have been in “serious” talks with Twitter back in 2008 when the service first rose to prominence.
Given the relationship between the two companies, an investment by Apple in Twitter is not entirely implausible. Twitter CEO Dick Costolo has, however, previously refused to discuss any potential investment by Apple, but said the company is a “great partner” and said: “We think of them as a company that our company looks up to.”
Costolo recently stated Twitter will stay a private company for as long as it wants, and that it has “truckloads” of money. Costolo stated: “I like being private for all sorts of reasons. It allows us to think about the business and the way we want to grow it in the small boardroom as opposed to being beholden to a particular way of growing the business.”
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