Apple’s really good at a lot of things, but social media isn’t one of them.
That’s why a recent report that says Apple is considering making a large investment for a stake in Twitter is big news.
The New York Times reported this week that Apple could invest hundreds of millions of dollars into Twitter, upping the 140-character social network’s value from $8.4 billion to $10 billion. If the moves comes to fruition, Apple could have a leg up on its competition against Google and the search engine’s social network Google Plus.
“Though an investment in Twitter would not be a big financial move for Apple by any stretch — it has $117 billion in liquid investments, and it quietly agreed to buy a mobile security company for $356 million on Friday — it would be one of Mr. Cook’s most important strategic decisions as chief executive,” the Times reported. “And it would be an uncommon arrangement for Apple, which tends to buy small start-ups that are then absorbed into the company.”
What would a relationship of that magnitude between Apple and Twitter actually mean? Well for one, it would make Apple a more social company.
Everyone’s familiar with Apple’s failed attempt at social media with its music network called Ping. Ping still exists, but rarely talked about and even more rarely used. Joining a company that is used 24/7, and even has spawned news sites dedicated to it, would be a huge step forward.
Twitter has more than 140 million active users and plenty of cash on hand. The company is expected to go public in the coming years.
But how would Apple leverage Twitter? With its recent Mac operating system release, OS X Mountain Lion, Twitter is now fully integrated into the Mac. Since iOS 5, Apple’s mobile operating system for the iPhone and iPad, Twitter has also been fully integrated. Could that integration dive even deeper once Apple acquires a stake in Twitter?
According to the Times, both sides aren’t talking.