Facebook Thrown Out of Tree After Caught Kissing With Twitter

At Web 2.0 Summit a couple weeks ago, John Battelle asked Mark Zuckerberg about a potential acquisition of Twitter. Zuckerberg essentially avoided the question and Caroline McCarthy, suggested such a notion was ludicrous. This morning, Kara Swisher revealed that acquisitions discussions were actually taking place but eventually ended in failure.

The reason, according to Kara, was that Facebook offered a $500 million stock exchange at Microsoft’s $15 billion valuation. Twitter executives and investors suggested that such a valuation was not accurate in the current market environment. Public rumors suggesting a current stock valuation of $4 – $5 billion have supported Twitter’s position.