Rumor has it that, until 3 weeks ago, Facebook was negotiating to buy Twitter for $500 million. According to TechCrunch, the $500 million comprised $100 million in cash and $400 million in stock, based on Facebook’s valuation at $15 billion.

Negotiations, however, ended 3 weeks ago. Among other things, Twitter had doubts about the value of Facebook’s stock and Facebook had concerns over Twitter’s burn rate and revenue earning potential.

Source: Robin Wauters, “Acquisition Dance Between Facebook And Twitter Over For Now?” TechCrunch, November 24, 2008

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