Apple and Twitter are two companies worth talking about and when there is news that Apple might be having talks about funding Twitter out of its $117 billion cash hoard, then you really have to pay more attention to the details from both sides. According to reports from the New York Times, Apple and Twitter have had talks in the recent months, but they are not having any conversation whatsoever at the moment. Apple has the potential to invest several hundred million dollars into Twitter and all for good reasons because Twitter is not your every other company, it does has a good profit history. Moreover, Twitter has already gathered a funding, which is close to $1 billion.
Twitter is a successful company and it has plenty of cash of its own so to speak. A company that is expected to generate about $300 million in this year through advertising sales, its CEO Dick Costolo said, “I just don’t worry about that stuff…if you wait until the business and business-results speak for themselves, you can be a public company on your own terms.” He further added that IPO does not occupy his thoughts much. Even if Twitter did gathered a funding of almost a billion dollars, it does not seem to be having the need to gather more, or maybe we are looking at the small picture while saying that, because what goes in the minds of CEO’s of such companies, is probably something we cannot imagine. All we can do is look at the facts and news and draw conclusions from it.
Strategically speaking, Apple’s investment in Twitter gives an edge to Apple in the sense to giving the iPhone and iPad maker a close relationship with Twitter. Twitter has about 140 million active users at the moment that generate about 3 billion tweets in a single week.
The Times noted that Ali Rowghani, who is the chief financial officer of Twitter, had close ties with the former Apple CEO Steve Jobs. Ali Rowghani spent nine years at the Pixar Animation Studios where the former CEO of Apple was the Chairman.
One reason for Apple’s investment thoughts in Twitter would be that, although Apple has made a huge name in devices manufacturing, but yet it has been unable to mount its own social network. So in a sense, working with dominant social networking services such as Twitter and Facebook will certainly give key strategic initiative to the tech giant. Moreover, Twitter’s integration into Apple’s iOS has been a top priority for both companies over the last couple of months.
The philosophy that Twitter’s CEO Costolo shares is the same that underlies Apple’s long history of innovation. When speaking about Twitter’s mission, Costolo said that, “We are going to offer simplicity in a world of complexity.” Furthermore, Twitter is striving to bring 2 billion people into its universe filled with tweets and Apple would not want to miss this ride considering the fact that Apple has been struggling to get into the social network experience on its own.