Money Matters - Simplified

Twitter in search deal talks with Google, Microsoft

Since its creation in 2006 by Jack Dorsey, Twitter has emerged as a remarkable news discovery service. With floods of tweets posted everyday, Twitter has gained popularity as a new source to search for the latest news events and happenings

New York, October 9 -- With Google and Microsoft in talks with Twitter over a real time search deal, it seems that the micro-blogging site has finally found a revenue source.

The Wall Street Journal blog, All Things Digital reported Thursday that both the companies are looking to integrate Twitter feed to their search engines.

Amid raging search war between them, the main aim of Google and Microsoft is to tap on Twitter’s real time search in order to boost their results.

Since its creation in 2006 by Jack Dorsey, Twitter has emerged as a remarkable news discovery service. With the floods of tweets posted every day, Twitter has gained popularity as a new source to search for the latest news events and happenings.

Potential revenue model
Though Twitter is one of the fastest growing social media site, the micro-blogging site has no revenue source.

Over the years, Twitter has received funds from investors for successfully carrying out its operations. Recently, the site received $100 million in new funding from investors including T. Rowe Price and Insight Venture Partners, and is currently valued at $1 billion.

But the search deal, if materialized, will not only give Twitter a bigger Web presence it will also set up a significant revenue model.

According to All Things Digital, Twitter is discussing various types of deals with the two companies. Quoting the unidentified sources, the Web blog stated that Twitter could receive millions of dollars or could enter a revenue sharing agreement with Google and Microsoft.

Readers online looking forward to the deal
Many online readers have taken to blogs, forums etc and are discussing prospects of the ongoing talks between the two search engines and Twitter.

A reader named Becky Grant commented on marshable.com, “The people at twitter are starting to use their business brains since they have a large statement to fullfill of 1 billion dollar worth. I think this plan would definitely help them rise up there.”

“I think Twitter is making a smart move keeping the business close and working through partnerships. Fact is, they have a great tool that neither of the big search giants thought of first - so why not hold on to the business and build rev sharing partnerships deals for data,” stated Frank Torres on the same forum.

Another reader Rob Mangiafico stated on Search Engine Journal, “Unless MS offers something over the top, I think Google will get the nod. If they integrate Twitter similar to image/blog searching in Google, it could be quite useful without cluttering up regular search results.”

Whether the deal will fructify or not is yet not known, but the main thing, as stated by Wired.com, is that Twitter should earn revenue indirectly because charging the users could mean death knell.