There has been much speculation about Google’s next acquisition. Late last week rumors emerged Google was in conversations with Twitter’s Evan Williams about a possible acquisition. In my view Google is not interested in an all out acquisition of Twitter.

Google recognizes five factors when considering its relationship with Twitter:

1. The overlap between Google searchers and Twitter registered users is significant. With close to 80% of the US search market, Google can acquire and reach/monetize those same Twitter users through other more cost effective channels.

2. Google’s social media record is poor – it is unlikely Google would know what to do with Twitter despite its acquisition of YouTube. Furthermore, Google Friend Connect, at the heart of the search engine’s social media efforts, is fully integrated  with Twitter, allowing Google Friend Connect sites to integrate Twitter content and users.

3. One of Google core UPS is quality and speed of indexing. What Google wants from Twitter is a real-time feed of updates to speed indexing. At present Google must independently index each Twitter user periodically to look for updates. This process is slow and expensive.

4. Google can establish a (risky but potentially lucrative) advertising partnership with Twitter. As reported by Adage Google was testing incorporating Twitter streams in AdSense units. Google has designed special AdSense ad units that pull the five most recent Tweets from TurboTax’s Twitter stream. TurboTax anticipates that the campaign will raise people’s awareness that the brand is listening and talking to their customers. Will it work? Time will tell.

5. Google is diversifying into the VoIP and communications segment. GrandCentral, a phone management service acquired by Google for $50+ million in 2007 is at the core of their strategy. Following months of modifications Google has released Google Voice. Google Voice proposition is simple – “one phone number for all your phones, for life.”

As opposed to growing the service organically, Google will acquire Skype. eBay’s recent announcement it plans to spin-off Skype (following a $1.4 billion write-down on the deal) provides Google with a unique opportunity to quickly achieve critical mass within the P2P VoIP segment. The integration of Skype mobile into Google Android and Skype Business into Google Apps would provide a significant boost to Google’s efforts to integrate VoIP into its staple of existing services. On the other hand, what Google has in reach, Apple has in community. Apple’s iTunes is probably the only platform where an integration  of Twitter makes any sense.  

Alain Portmann, author of  ”Why Google will not acquire Twitter” is Web Liquid’s Founding Partner, Head of Strategy. Visit www.webliquidgroup.com for more thought pieces.

About Web Liquid

About Alain Portmann

My job is simple. To inspire staff, clients and consumers.

Mail | Web | More Posts (65)

This is some text prior to the author information. You can change this text from the admin section of WP-Gravatar  My job is simple. To inspire staff, clients and consumers. Read more from this author