Apple may be looking to make a strategic investment in Twitter, and has already discussed it with the social networking company in the last couple of months, according to a new report by NYT.
Apple tried to enter the social space with Ping last year, but that was one huge failure. Just like Microsoft has been struggling with Search, and has hardly been able to topple Google despite pouring in billions of dollars into its Online Services division, mentioning Apple and Social in the same sentence just doesn’t seem right.
Apple may have realized that social just isn’t in its DNA; after all no one company can do everything right. Apple considered investing hundreds of millions of dollars in Twitter at a valuation of around $10 billion earlier this year, but apparently the deal didn’t go through as planned.
It did, however, integrate Twitter into iOS during the launch of the iPhone 4S.
While Google has Google+, Microsoft has a strategic investment in Facebook and continues to partner with it for Bing and other endeavors.
Apple needs to be more social, and Twitter seems to be the right partner for it, as there seems to be no clash between their ambitions, which are clearly in different areas.
Apple has tons of cash, and while Twitter doesn’t really need any right now (it raised nearly $1 billion and is making progress with its advertising business), both companies need each other. Twitter has benefited greatly from integration with iOS and Mac OS X, and would like to maintain its relationship with Apple, which has also gotten a bit cozy with Facebook lately.
We’re not sure whether the talks are still on, but apparently, they’re not. However, Apple investing in Twitter makes a lot of sense, for both of them.