Explain why Twitter didn't buy Topsy

Source: Internet
Author: User
Keywords Acquisitions many times and also
Tags apple blog comment company cost data high it is

Lead: American Science and Technology blog AllThingsD Today "Read the reason Twitter didn't buy Topsy" (Twitter considered Buying Topsy, Too―here ' Why It didn't ' t happen) Comment That Twitter has also considered buying Topsy, but because the company's engineers think they can develop similar products, coupled with the cost of the acquisition is too high, so after consideration or abandon the plan.

The following is the full text of the article:

It is reported that Apple has just spent more than 200 million dollars on the acquisition of social analysis company Topsy. Although there are divergent views on Apple's intentions, no one can be sure.

Before Apple, however, topsy at least attracted another famous company, Twitter. According to people familiar with the matter, in the course of Topsy's 6-year history, Twitter has considered acquiring the company on many occasions.

The value of Topsy is clear. Almost as soon as Twitter was born, the company was allowed to use Twitter's firehose data--all the information posted on Twitter. It is one of a handful of companies that have access to Twitter firehose data and has developed many interesting businesses. Topsy can search Twitter data to show breaking news, to measure the overall process for specific topics, and even to predict future events.

Twitter obviously has all the firehose data. But people familiar with the matter said the Topsy was able to attract Twitter because Topsy's search techniques and tools were sometimes more effective than Twitter's self-developed search tools, which were the weakness of Twitter for years. While Twitter has been trying to improve its search capabilities, progress has been slow.

Neither Twitter nor Topsy commented.

Topsy eventually did not choose Twitter, but instead invested in Apple's embrace, for at least the following two:

1, arrogant. People familiar with the matter said that Twitter's existing team of engineers were not paying enough attention to Topsy's products and that they could develop a similar tool without the help of outsiders and mergers.

2. Price. There are reports. Topsy's acquisition price is more than $200 million trillion, and for a product that the Twitter engineer thinks can be replicated, the offer is clearly a bit too high.

In the end, Twitter missed acquisitions many times.

But one thing is worth paying attention to: even if the Twitter team can develop a product like Topsy, it still has to invest time and resources. By self-development, Twitter may improve the efficiency of capital use. Alternatively, the company may embark on a smaller acquisition of talent, such as the acquisition of spindle, a start-up company founded by Microsoft's Bing search engineer.

In any case, Topsy will bring his own search and data to Apple and ultimately contribute to Apple.

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