Apple is considering making an investment in Twitter in a strategic effort to increase its foothold in social media, people briefed about the matter said.
Though the world most valuable company is hugely successful in selling millions of iPhones and iPads, it has little presence in the world of social networking, which has become major activity on internet and mobile devices. People are increasingly influenced by social media networks and how they spend their time and money – a major consideration for Apple as it also sells apps, games, movies and songs.
The investment which may rack up to hundred millions, a move that can value Twitter above $10 billion from $8.4 billion last year, according to these people.
However, there are no guarantees whether the deal will be realized as the negotiations are private at the moment.
Unlike search giant Google and Facebook, Apple has made little friends in social media. So Apple is trying to narrow the gap by teaming up with Twitter.
Apple and Twitter are already working together. Besides, Apple has deeply integrated Twitter features into its iPhones, iPads and Macs and Twitter has also allocated more resources for tightening its partnership with Apple.
Tim Cook, Apple’s CEO admitted at a recently tech conference that even though Apple doesn’t need to own a social network, but, yes, it needs to be social.
In response Apple agreed to buy AuthenTec, a mobile security firm for $356 million on Friday.
The Twitter deal would enable Apple to access Twitter’s in-depth understanding of social media, which will help Apple to integrate Twitter even more into its products.
Twitter which already has over 140 million users has grown quickly, with users generating massive streams of short messages regarding news, their lives and everything else.