Facebook was eyeing the acquisition of Twitter but the companies have yet to reach a consensus on the deal with some insiders saying the deal has failed altogether.
The Web 2.0 company has been in business for more than two and a half years but the revenue growth is minimal with almost no profits made. Facebook was considering a bid of $500 million and the talks were underway as recently as Nov. 22 .
Given the dire situation of the economy and the financial standing of Twitter, the deal value could have been much lower, Financial Times reported, citing Chris Sacca, a Twitter investor. If the deal has failed, as the indicators suggest, this could be a setback to both Facebook and Twitter. Former will suffer because the latter provided an excellent business opportunity and the lack of revenues/capital might force Twitter to sell itself, at much lower rates, in near future.