Should Facebook Try to Acquire Twitter … Again?

That’s what Kara Swisher suggests this morning. I’ve been saying for weeks now that Facebook needs to hurry up and open their status API so they can put an end to Twitter’s growth but many people are skeptical of such a situation. The second best option would of course be to acquire the company. If you put two extremely hyped companies together do you create a lot of value though?

That’s definitely debatable but both founders clearly have the “chutzpa” as Swisher puts it, to go after ridiculous valuations despite clear revenue models. It’s not really apples to apples though. Facebook has a fairly large revenue model through advertising whereas Twitter has yet to make a penny. Yesterday Howard Lindzon wrote that he’d put his money in Twitter rather than buying Facebook stock at a $5 billion valuation though. Speaking of which, please let us know if you’d like to buy Facebook stock at a $5 billion valuation.

Anyways, if Twitter gets any more hype in this economy we may still be in a mini-bubble among social networking entities. The site clearly has a ton of growth but it only has around 5 million users, valuing each user at around $40 in the latest investment round. If each Facebook user was worth the same, Facebook would be worth around $6.4 billion which would mean buying Facebook stock at $5 billion would be a bargain!

The group that’s investing in Twitter may actually be just betting that Twitter and Facebook will merge and at Facebook’s current valuation in the secondary markets, the investors will just about break even. Before any merger takes place though, Facebook should seriously consider releasing a public API for user statuses. I’m confident that this would put a serious dent in Twitters growth.

So do you think Facebook should make another run at Twitter? Should Facebook launch a public status API? Is all this conversation completely ridiculous?

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