An Alliance Could Answer The Growing Threat from Google and Facebook By Evelyn M.RuIsi and Nick Bilton
Apple, which has stumbled in its efforts to get into social media, has talked with Twitter in recent months about making a strategic investment in it, according to people briefed on the matter.
Although apple has been hugely successful in selling phones and tablets, it has little traction in social networking, which has become a major engine of activity on the Web and on mobile devices. Social media are increasingly influencing the ways people spend their time and money — important consideration for Apple, which also sells application, games, music and movies.
Apple has considered an investment in the hundreds of millions of dollars, one that could value Twitter at more than $10 billion, up from an $8.4 billion valuation last year, these people said. They declined to be identified because the discussions were private.
There is no guarantee that the two companies, which are not in negotiations at the moment, will come to an agreement. But the earlier talks are a sign that they may form a stronger partnership amid intensifying competition from companies like Google and Facebook.
Apple has not made many friends in social media. Its relationship with Facebook, for example, has been strained since a deal to build Facebook featured into Ping, Apple’s music-centric social network, fell apart. Facebook is also aligned with Microsoft, which owns a small stake in it. And Google, an Apple rival in the phone market, has been pushing its own social network, Google Plus.
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