Fridays social media business round-up is chock full of failed acquisition
news, private investment and growing revenue for social networks. First is a
look at Fortune s scandalous article on Twitter and the bidding on the
micro-blogging company over the past twelve months. Second, T. Rowe Price pours
cash into Facebook and Zynga. Finally, PopCap games continues to grow thanks to
social networking. Twitter Rejected $10 Billion Offer From Google: The Internet
has been buzzing following the Thursday publication of a report at Fortune
containing a number of juicy tidbits on Twitters business. The article
highlighted an older rumor that Google (NASDAQ: GOOG ) attempted to purchase
Twitter for $10 billion in the fall of 2010, a rumor that was denied by Twitter
CEO Dick Costolo shot down at the Mobile World Conference in February. The
Fortune article also claims that Facebook offered $2 billion for the company. As
Venture Beat points out, it was only in February that The Wall Street Journal
valued Twitter at $8 to $10 billion, meaning that its all too likely that
Twitter rejected Googles offer hoping for a higher bid. Facebook, Zynga Get
Investment Boosts from T. Rowe Price: Investment company T. Rowe Price (NASDAQ:
TROW ) has not been shy about staking its claim in social media. Though it hasnt
invested in venture capital funded companies or Internet stocks with any
regularity over the past two decades, its made bold moves in the sector
recently. The mutual fund company poured $100 million into Twitter in 2009,
valuing the company at $1 billion right as the network was beginning its
monumental period of growth. Now a Friday report at The Wall Street Journal says
that T. Rowe has invested $55.4 million in social network Facebook and $72
million in social video game developer Zynga ( Farmville ). The relatively high
risk of investing in companies still months away from offering IPOs speaks
volumes of their value to investors. While its unlikely that Facebook or Twitter
will be acquired in the near future, Zynga remains a promising target and T.Rowe
Prices stake in the company could yield a monumental payout sometime in the next
twelve months. Game Site PopCap Sees Revenue Soar Thanks to Social Networks:
PopCap Games, the company behind PC video game phenomenon Bejeweled , had a
banner year according to a new report at Business Insider . The Seattle,
Washington company made $100 million in revenue in 2010, up 25% year-on-year.
While the Apple Inc. (NASDAQ: AAPL ) App Store on the iPhone and iPad played a
significant part in the companys jump, it was Facebook users that led growth for
PopCap in 2010. Its game Bejeweled Blitz came in number five in terms of daily
users just behind Zyngas four titles including Cityville , Farmville , Texas
Holdem , and Frontiersville . As of this writing, Anthony John Agnello did not
own a position in any of the stocks named here. Follow him on Twitter at
@ajohnagnello and become a fan of InvestorPlace on Facebook.
No comments:
Post a Comment