Google, Keep Your Hands Off Twitter

Most tech-news junkies are familiar with Google CEO Eric Schmidt's somewhat bitchy put-down of Twitter last week (a "poor man's email system").

Perhaps not as well-known was Schmidt's response to television journalist Charlie Rose's question about whether the search giant had plans to acquire the increasingly popular microblogging site:

I shouldn't talk about specific acquisitions. We're unlikely to buy anything in the short term partly because I think prices are still high.

Of course, there has been plenty of speculation that Google indeed plans to make a buyout offer to Twitter. And MarketingPilgrim's Andy Beal is certain that Schmidt's non-denial denial means exactly that:

[T]here are plenty of good reasons for Google to acquire Twitter -- the top reason is Google's ability to place AdSense ads in your Twitter stream -- but there's an even bigger reason why Google should, nay must, acquire Twitter.

Twitter is becoming an important communications channel -- intrinsic to the web. Aside from the being able to pick up the company for a fraction of the $15 billion Google has in cash, Twitter is a key component of the search engines' ambitious goal: to organize the world's information.

Don't believe Google's sleight-of-hand talk about the timing not being right. The timing is perfect! While other companies pull back on spending -- causing Twitter's valuation to drop due to lack of interest -- Google can fly in under the radar and pick up perhaps the most important internet start-up since Facebook.

Count me as hoping that doesn't happen. Look, I'm a big Google user, like most of us. It's a fantastic search engine. But I have no desire to see Google dominate the Internet in the same way that Microsoft dominated the computer industry for far too long. But it seems as if we're headed that way.

Since 2001, Google has made more than 50 acquisitions (here's a list). Most of been relatively small companies, but not all. Among the major ones:

• YouTube, the top online video site
• Pyra Labs, which created Blogger.com (and which was co-founded by Twitter founder Evan Williams)
  
• Baidu, China's largest search engine
• DoubleClick, a major online advertising company

In addition, Google has purchased Jaiku, a Finnish microblogging site that is supposed to be a competitor to Twitter. You'd think Google would try to ramp up Jaiku to compete with Twitter, but the truth is, Twitter is approaching (or has hit) critical mass, so it may be too late for that.

What makes Twitter a threat to Google -- and therefore a potential takeover target -- is its emerging real-time search capability, something even the mighty Google does not have. Unfortunately, what Twitter doesn't have -- yet -- is a viable business plan. Plugging into Google's AdSense program might solve that problem.

The thing is, most Twitter users like the service just the way it is. Injecting ads into the tweetstream may not play so well, and could prompt an exodus to an emerging competitor.

My main concern, however, has to do with the growing Google Goliath. I don't think it's healthy for one company in any industry to amass so much control. And when we're talking about the "world's information"...well, for me, alarm bells go off.