Facebook Decides Not to Buy Twitter, Doesn't Tell Anyone

AllThingsD is reporting that about three weeks ago, while no one was looking, Facebook and Twitter ended several weeks of serious talks, in which Facebook was offering to buy the popular service outright for $500 million of its stock, according to sources on both sides.

The report said that the talks broke down in part over Facebook’s valuation; in other words, was $500 million of Facebook “stock” really worth that much, given that the company hasn’t gone public yet.