Reuters reports that Facebook is considering buying twitter if the details can be agreed upon. Facebook already offers the “update– tell me what you’re doing” service that twitter has, but twitter has focused on status and mobile where facebook builds a whole social network. In fact my twitter account automatically updates by facebook status.
This purchase makes complete sense since Facebook does not yet have a profitable business model and neither does twitter. The reported $500 million that Twitter is asking is based on Microsofts $15 billion investment in Facebook last year. Facebook is trying to arrange an all stock transaction.