Twitter Denies Facebook on A $500 Million Takeover!

Facebook offered to buy Twitter for $500 million of overvalued Facebook stock, Kara Swisher says. Twitter rejected the offer for several reasons:

And they can be,

• At Facebook’s real valuation, $5 billion or so, the offer only amounted to $150 million (not bad for two-year old company with no revenue, but a far cry from the billion-dollar dream)
• Twitter has high hopes for its own secret revenue model which will be announced next year.
• Twitter’s investors aren’t stupid: They wanted cash. Facebook presumably doesn’t have that much cash to spare.

The question is, is it really a good idea to sell on the first chance you get?

I think no. And Twitter surely did the right thing. What do you say?

[via: alleyinsider.com]