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Investors have speculated about a potential Alphabet-Twitter deal since 2015, when former Google executive Omid Kordestani left the company to become Twitter’s executive chairman. Since its initial public offering nearly five years ago, Twitter has struggled to add enough users to satisfy Wall Street. Twitter could potentially benefit from having a bigger parent company as well. Google later admitted in a blog post that despite “a lot of effort and dedication into building Google+ over the years, it has not achieved broad consumer or developer adoption.” The company said 90% of Google+ user sessions are less than 5 seconds.īuying Twitter would give Alphabet, which already owns YouTube, a better chance of competing with Facebook (FB) for social media ad dollars. Alphabet recently shut down its struggling Google+ social network for consumers after The Wall Street Journal reported on a security bug that the company failed to disclose. Kass said that the addition of Square and Twitter to the Alphabet portfolio could help Google boost its presence in social media and mobile payments – two areas in which Google has lagged rivals.Ī spokesperson for Square had no comment about acquisition speculation while Twitter and Alphabet did not respond to requests for comment.īut there is merit to Kass’s argument. Could Twitter and Square CEO Jack Dorsey one day find himself working for Google? A prominent hedge fund manager hopes so.ĭoug Kass, who runs Seabreeze Partners Management and invests in Twitter, told The Street’s Real Money last week that Google parent Alphabet ( GOOGL) is a logical buyer of both Twitter ( TWTR) and Square ( SQ).