So I am not announcing any new news here, but something dawned on me today. Social Networking Sites are starting to become their own Treasury Departments of sorts. Let’s look at the recent failed deal between Facebook and Twitter, two SNS giants. Facebook attempted to buy Twitter for $500 million in Fb stock at the valuation given to Fb by Microsoft’s earlier $400mil+ investment. Twitter walked away fromt the deal believing that Fb was overvalued by Microsoft.

This has to be one of the craziest times in modern history for mergers & acquisitions simply based upon the transition of one unprofitable company’s stock to another as currency for assets. Fb is becoming the treasury and the bank all in one. It is pure genius. Here they are able to print Facebook bucks to buy Twitter “so-called” assets on the hope that one day one of these services will make some serious cash. To me this looks like the blind leading the blind. I am not a researcher myself, so I have no idea as to the precedent for similar deals between companies that have no revenue streams or maintain revenue streams that are weak at best, but this one surely must take the star of the show.