New York, Aug 6 (Newswire): Apple Inc. and Twitter Inc. held discussions more than a year ago about Apple possibly making a strategic investment in the short-messaging service, at a time when many technology giants were playing catch-up in social media.
That dynamic prompted a flurry of activity by established players that suddenly found themselves a step behind a big digital trend. Apple and Twitter also face common rivals such as Google Inc. and Facebook Inc.
Last year, some discussions between Facebook and Apple over meshing the social network into the iPhone's software fell apart, and Google and Twitter ended a partnership that pulled Twitter messages into Google search results.
The discussions between Apple and Twitter didn't immediately result in a deal and aren't currently active, people familiar with the matter say.
Some tech-industry dynamics have since shifted. Last month, Facebook and Apple announced an agreement to wrap the social network into the iPhone's main software for the first time.
In the broader Silicon Valley market, there are also growing investor worries about the disconnect between business fundamentals and valuations at hot companies like Twitter, which last year snagged an $8.4 billion valuation in a financing round.
The worries have been fueled by limp stock-market debuts of such companies as Facebook and Zynga Inc., ZNGA -2.83% whose stock prices have dropped by 38% and 66%, respectively, since their IPOs.
Wedbush Securities, which operates a private stock market for private companies, said the price of Twitter stock trades has dropped roughly 3% to 5% in the last week. Wedbush analyst Michael Pachter attributed the drop to Twitter insiders being more eager to sell their shares.
People close to Twitter have said that the San Francisco company is ahead of 2012 revenue projections laid out last year and that the company has largely ruled out acquisitions as it builds its business for a potential initial public offering in a year or so. People familiar with the company said this is the year for Twitter to prove it can be a big business.
Twitter will pull in $259.9 million from its ad business this year, eMarketer Inc. projects.
The Apple-Twitter relationship remains strong even without a strategic investment stake. Twitter continues to mesh its short-messaging service into Apple products, which are responsible for a big chunk of Twitter use. Executive Kevin Thau, in a unique role at Twitter, is assigned to look after the Apple relationship. Twitter's ties with Apple are also closer than with any other tech giant, people familiar with the company say.
Twitter executives, including Co-Founder Jack Dorsey and Chief Executive Dick Costolo, have expressed admiration for Apple and continue to see the company as a natural ally against Facebook and Google, according to people familiar with the executives.
For its part, Apple has woven Twitter into devices such as the iPhone and, more recently, the Mac computer. For example, starting with the iPhone operating system Apple released last year, people who use the iPhone can log into their Twitter account once and then from many apps—including websites and YouTube—tap one button to post links or photos on Twitter.
Apple continues to keep a close eye on social-media start-ups, and the company meets often with social app developers, said people familiar with the matter.
That dynamic prompted a flurry of activity by established players that suddenly found themselves a step behind a big digital trend. Apple and Twitter also face common rivals such as Google Inc. and Facebook Inc.
Last year, some discussions between Facebook and Apple over meshing the social network into the iPhone's software fell apart, and Google and Twitter ended a partnership that pulled Twitter messages into Google search results.
The discussions between Apple and Twitter didn't immediately result in a deal and aren't currently active, people familiar with the matter say.
Some tech-industry dynamics have since shifted. Last month, Facebook and Apple announced an agreement to wrap the social network into the iPhone's main software for the first time.
In the broader Silicon Valley market, there are also growing investor worries about the disconnect between business fundamentals and valuations at hot companies like Twitter, which last year snagged an $8.4 billion valuation in a financing round.
The worries have been fueled by limp stock-market debuts of such companies as Facebook and Zynga Inc., ZNGA -2.83% whose stock prices have dropped by 38% and 66%, respectively, since their IPOs.
Wedbush Securities, which operates a private stock market for private companies, said the price of Twitter stock trades has dropped roughly 3% to 5% in the last week. Wedbush analyst Michael Pachter attributed the drop to Twitter insiders being more eager to sell their shares.
People close to Twitter have said that the San Francisco company is ahead of 2012 revenue projections laid out last year and that the company has largely ruled out acquisitions as it builds its business for a potential initial public offering in a year or so. People familiar with the company said this is the year for Twitter to prove it can be a big business.
Twitter will pull in $259.9 million from its ad business this year, eMarketer Inc. projects.
The Apple-Twitter relationship remains strong even without a strategic investment stake. Twitter continues to mesh its short-messaging service into Apple products, which are responsible for a big chunk of Twitter use. Executive Kevin Thau, in a unique role at Twitter, is assigned to look after the Apple relationship. Twitter's ties with Apple are also closer than with any other tech giant, people familiar with the company say.
Twitter executives, including Co-Founder Jack Dorsey and Chief Executive Dick Costolo, have expressed admiration for Apple and continue to see the company as a natural ally against Facebook and Google, according to people familiar with the executives.
For its part, Apple has woven Twitter into devices such as the iPhone and, more recently, the Mac computer. For example, starting with the iPhone operating system Apple released last year, people who use the iPhone can log into their Twitter account once and then from many apps—including websites and YouTube—tap one button to post links or photos on Twitter.
Apple continues to keep a close eye on social-media start-ups, and the company meets often with social app developers, said people familiar with the matter.
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