NEW YORK (TheStreet) -- Over at HuffPo, former Monster Worldwide (MWW) President and COO Jim Treacy makes a solid case for a Facebook (FB) buyout of Twitter (TWTR). Here's the part that resonates most with me:
It's not hard to imagine Twitter and Vine (Twitter's globally popular six-second video-clip property) fitting in and thriving as part of the social media pantheon Facebook has assembled. It's equally easy to see how Facebook could benefit from the additions:
· Introduce Twitter and Vine to all the Facebook, Instagram and WhatsApp users.
· Platform leverage and operational synergies galore to exploit (sales and technology, in particular).
There's no need to repeat too much of what I've already written. It's on the record at the links. However, something else Treacy wrote in his column requires an extension of thought. Treacy astutely points out:
Shopping Twitter would likely bring immediate and sizeable reward to its' shareholders. Would Facebook or Google pass up a chance to bid on such a well-positioned, strategic asset? Don't think so ...
Stop there ... because you had me at would likely bring immediate and sizeable (or is it sizable!?) reward to its shareholders. Isn't that Twitter CEO Dick Costolo's job after all? To maximize returns for shareholders?
I'm not saying Costolo shouldn't focus on building a great company ... an effort that sometimes takes place at the short-term expense of investors (see, e.g., Amazon.com (AMZN)). But Twitter isn't Amazon. The opportunity in front of Twitter isn't near as large the one Amazon has seized and continues to seize, particularly if Twitter stays independent. So, within the context of his company's situation, Costolo does a disservice to TWTR investors by basically trying to show the world how smart he is. The dude's attempting and failing to fight his way out of a steel-reinforced paper bag.