Apple to buy Twitter for $10 billion?

“There were many responses from the Facebook – Instagram deal,” Eric Jackson reports for Forbes. “One of the more interesting ones to emerge at the end of last week was Phil Schiller’s response via 9to5Mac. The SVP of Marketing for Apple has deleted his Instagram account and declared that Instagram had jumped the shark.”
“There is a narrative that Apple likes to advance which is that the best and most apps are on the iOS platform compared to others,” Jackson reports. “Instagram was another ‘poster child’ app that Apple could use in this story. It was (is) the top mobile photo sharing app. It was beautiful. And it started on iOS and – up until a couple of weeks ago – wasn’t available on any other platform. Then it launched on Android and – a couple of days later – it was bought by Facebook.”

Jackson writes, “Apple’s strategy with apps to this point has been: let a thousand flowers bloom – we’re Switzerland. It can no longer be… Essentially, if Apple was to buy Twitter today, it would be a play on unleashing iAd – although perhaps not for 5 years from now in any great monetary fashion… Twitter is beachfront property in the mobile world. It’s a key for iAd to be able to deliver a completely new kind of ad service in the next ten years. And it’s future revenue potential has nothing to do with its revenue last year.”

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