Twitter, the social networking site, has held ‘low level’ talks with Facebook and Google among others, to discuss a potential buy-out of Twitter, it has been revealed.
Launched in 2006 by Jack Dorsey, Twitter allows users to send and read 140 word messages known as ‘Tweets’ by posting online. It is estimated that the micro blogging site has around 180 million users worldwide.
In December last year, Twitter raised $200m in funding from Silicon Valley venture capital firm Kleiner Perkins Caufield & Byers and existing Twitter investors in a deal that valued it at $3.7bn.
Investors have recently demonstrated a strong appetite for social networking and media firms such as Facebook and LinkedIn. A takeover could see the networking site reach a valuation of $10bn (£6.2bn)according to the Wall Street Journal (WSJ).
According to the WSJ report, other companies have also held talks with Twitter, but the talks have yet to progress to the deal stage. Google, Facebook and Twitter all declined to comment.
Despite the substantial valuation, the report said Twitter's executives and board were working towards building a large, independent company. It has been predicted that the company could expand to reach a valuation of around $100bn.
"People familiar with the situation said the company believes it can grow into a $100bn company," the WSJ added.
A secondary market is growing in the hope that Twitter may decide to float shares.
© Crimson Business Ltd. 2011