The Birth of Twitter
Wherever you stand in the Twitter debate (love or hate), I have contested for some time that you at least have to find it interesting that so many people are into communicating in this new way. Anyway, I quite enjoyed this story of how Twitter came to be from @Dom. (The original nugget was super simple: “a service that uses SMS to tell small groups what you are doing”.)
As a side note, my (kinda) bold prediction for 2009 is that Facebook will buy Twitter and Microsoft will buy Facebook (or at least put the wheels in motion). While I think both can be profitable services, I don’t think either will ever be massively so (especially if they rely on business models that are about interpersonal interactions). At the end of the day, I’m not sure how either will live up to the large investments they already have (and rumor has it both are looking to add to, Twitter with $20 million). Sure, I understand Fred’s point about looking at costs when thinking about revenues, but surely all the investors in these two companies are going to want to see returns that match the scale of their investments, right? (Just my two cents.)

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Oddly, taking large investments dictates the companies aim for large exits. Given the current market conditions I can’t imagine the public bridging the gap to revenues, so predicting a private exit to a massive company wouldn’t be surprising. Predicting who, and when, that’s bold :)
Amazing how simple insights can lead to something far grander, all by being open to human ingenuity.
I never understood the value of Twitter until I invested the time to understand it. http://blog.matthewcain.co.uk/5-reasons-that-i-love-twitter/
@Taylor: Really love this sentence: “Amazing how simple insights can lead to something far grander, all by being open to human ingenuity.” Couldn’t agree more.
@Matthew: Thanks, but I was in no way debating the social value of Twitter, I I have an account I use quite frequently, use it for projects and built a tool to pull your first tweet. My question is purely around the value as a business.
Facebook may well buy Twitter. It makes sense on many levels.
Or does it?
The other option, as I noted in a post a couple weeks back, is that Facebook launches their own version of Twitter- using Status Updates. Same basic formula, API, free standing apps, etc. But using Status Updates.
There is a core difference between the two services though that needs to be ironed out if they are to merge: Facebook is all about communicating with people you know. Twitter is mostly for communicating with people you don’t know.
Since the former is a far more popular proposition than the latter, Facebook could just make Twitter their “talk to strangers” option
Or, like I just said, they could launch their own “talk to friends” version.
Still not sure which one makes most sense.