Twitter keeps the world guessing

San Francisco: It's not what he said, it's what he didn't say. Twitter chief executive Dick Costolo dismissed talk of Google buying his company for as much as $10 billion (Dh36.7 billion) as "just a rumour."

The comment came in answer to a question after an afternoon keynote address at the Mobile World Congress in Barcelona, Spain. But when a question came up about a rumour that Facebook was in early talks with Twitter, Costolo declined to comment. The exchange on Monday could fuel the near-constant speculation that Twitter will eventually be bought.

The possible combination of the two hottest social networking companies in Silicon Valley had tongues wagging on Monday.

"Twitter would be a great acquisition for Facebook as both platforms march towards global ubiquity," Wedbush Securities analyst Lou Kerner said. "Facebook also wants to keep Twitter away from Google."

Facebook and Twitter have engaged in talks in the past, but nothing came of them. But recent rumours of arch-rival Google's ongoing interest in Twitter could have spurred a new round of talks between the social networks.

Facebook and Twitter, which are privately held companies, declined to comment. Facebook's market valuation is north of $50 billion after venture capital firm Kleiner Perkins Caufield & Byers said that it had taken a $38-million stake.

Overall, the social media sector is in gold-rush mode. Online gaming firm Zynga is talking to investors about raising $250 million in a deal that could value the start-up at $7 billion to $9 billion.