Twitter-Google Deal Will Be 'One-Sided' For First 12 Months

Loading...
Loading...
Twitter IncTWTR
and
Google IncGOOG
are gearing up for a partnership that will bring tweets to the world's largest search engine. The full details have yet to be revealed, but there was some
speculation
that the deal started in February after a tweet by
Tesla Motors IncTSLA
co-founder Elon Musk appeared in a Google search. Twitter expert Sean Udall set the record straight. "Twitter tweets have always come up in Google on searches," Udall, CIO of Quantum Trading Strategies and author of The TechStrat Report, told Benzinga. "I've been using Google to find certain 'historical tweets' of mine for a year or more. So I don't think this is part of the new deal at all. Just normal 'meta search' functionality." Udall has high hopes for the Twitter-Google partnership -- and he's not the only one.

Related Link: What Will Twitter Look Like On Google?

Loading...
Loading...

Twitter's Big Win

Global Equities Research analyst Trip Chowdhry said that for the first 12 to 18 months, the deal "will be pretty much one-sided." "Twitter is more of a beneficiary and probably Google will not be making money on it," Chowdhry told Benzinga. "Think along the lines of the way the Microsoft and Yahoo search deal happened. For the first two, three years of service, it was very one-sided. Yahoo was the prime beneficiary and pretty much Microsoft was not making money on it." Chowdhry said this whole idea of giving Google access to Twitter is "based on some fees that Twitter will get." "We don't know what fees it will be, but there is a certain guaranteed minimum that will have to be paid out before Google can pocket some of the monetization," he said. "Initially it will be a negative for Google and extremely positive for Twitter. But probably after 12 months or so it could be a win-win for Google as well as Twitter."

Real-Time Search

Chowdhry said that Google will provide Twitter "with the distribution and search and indexing and everything." "They move from pretty much passive search to real-time search because everything that happens in real-time first breaks out on Twitter, not anywhere else," he explained. "Not on a website, not on a news channel. It is Twitter, which is a real-time time event broadcasting medium. Google gets access to it, but Google also has the reach and they have a very strong ecosystem and they could help [with monetization] for Twitter feeds. There [are] various formats -- video, audio and text." Chowdhry said that it will take time but noted that the revenue will be so high that Google will eventually benefit. Disclosure:
At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
Loading...
Loading...
Market News and Data brought to you by Benzinga APIs
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorAnalyst RatingsTechElon MuskGlobal Equities ResearchGoogleSean UdallTeslaTrip Chowdhrytwitter
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...