Apple (AAPL) May Purchase a Major Stake in Twitter

The Mac maker has been discussing with senior Twitter executives the possibility of investing hundreds of millions of dollars in the micro-blogging site, The New York Times reported.

Citing unnamed sources, the newspaper late Friday said  Apple (AAPL), which despite its growing dominance has failed to gain a social networking presence, was considering an investment that could value Twitter at more than $10 billion, up from an $8.4 billion valuation last year.

The Times said there are no talks “at the moment” and there is no indication as to how much a stake Apple would take if a deal were reached. However, if an agreement is reached, it is likely Twitter, which is already integrated into Apple smartphones and tablets, would become more ingrained in Apple products in return for sharing its expertise on the social web.

The latest version of Apple’s OS for Mac desktops and notebooks, called Mountain Lion, adds direct support for Twitter, making it easier for its 140 million active users to share their comments and content directly.

“Apple doesn’t have to own a social network,” Tim Cook, Apple’s chief executive, said at a recent tech conference. “But does Apple need to be social? Yes.”

According to Bloomberg, Twitter expects to generate at least $1 billion in sales in fiscal 2014.

Update 7/29:

Apple and Twitter are currently not in discussions on the iPhone maker taking a stake in the popular social networking site, sources familiar with the matter told Reuters.

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About Ron Haruni 1068 Articles
Ron Haruni is the Co-Founder & Editor in Chief of Wall Street Pit.

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