The social network has plenty of cash and is expected to earn about $300 million in advertising sales this year. The company’s Chief Executive Dick Costolo revealed that an IPO doesn’t occupy his thoughts much.
“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,” Costolo said.
An investment in Twitter would be strategic move for the iPhone and iPad maker in the sense of giving the company a closer relationship with the Twitter network, which is used by about 140 million of active users who generate close to 3 billion tweets per week.
According to The New York Times, it’s unclear whether the companies, which are not in negotiations at the moment, will come to an agreement. However, the speculations are a sign that Twitter and Apple may form a stronger partnership able to compete with Google and Facebook.
“Apple doesn’t have to own a social network,” Timothy D. Cook, Apple’s CEO, said at a recent technology conference. “But does Apple need to be social? Yes.”
Twitter will also win from the possible union as the mobile integration, introduced last year, simplified for iPhone and iPad users the way to sling photos, maps and other media directly to the social network.
The two world-known giants have already been working together. Apple has recently sewn Twitter features into its software for its devices, while Twitter has put more resources into managing its relationship with Apple.
Apple and Twitter are logical partners to a certain degree as unlike Facebook or Google, Twitter has no plans to compete with the Cupertino-based company. And as Apple has found, social is just not in its DNA.
“Those guys are a great partner,” Costolo said of Apple in a recent interview. “We think of them as a company that our company looks up to.” Twitter CEO went on adding that he would not discuss any potential investments or anything else related to the company’s relationship with Apple.
iPhone maker, which had spent months trying to hook Facebook into iOS, its operating system, swiftly reworked it for Twitter.
An insider familiar with the matter described Twitter as the “lucky mistress” in this chain of events, adding that the partnership was essentially “handed to Twitter on a silver platter.”
The source, which wished to remain anonymous also revealed that the relationship with Apple is quite close as Twitter assigned a vice president, Kevin Thau, to work with Apple full time.
CNBC explains that the cooperation between the companies is developing at a time of great uncertainty in the mobile market. Battle lines that previously seemed clear enough are rapidly blurring as companies push into new areas of the market.
Facebook, the social networking giant, is reported to be working on developing its own phone or core software for phones. As for Google, it acquired Motorola Mobility a year ago and is now in the business of building phones.