Facebook and Google are among the companies circling Twitter and considering a colossal buyout deal, insiders tell the Wall Street Journal. The talks haven’t gone anywhere yet, but the price under discussion is somewhere between $8 billion and $12 billion—roughly 100 times the amount of revenue Twitter, which lost money last year as it invested in expansion, expects to earn this year.
Finally Twitter up for sale for $12B Google,Facebook & Microsoft evaluating its worth
The rumored price tag is more than double the $3.7 billion Twitter was valued at in December. High valuations for tech sites have spurred sites including LinkedIn and Groupon—which recently rebuffed a $6 billion offer from Google—to plan public offerings for this year. “Are these prices justifiable based on financial multiples? No,” says a venture capital analyst. But the sites are building social networks and have plenty of data on their users, and “the market is valuing that mightily right now.”
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Source : The New York Times dated 31st March 2012
