Clarification: An earlier version of this story failed to disclose the author is an investor in Kik.
NEW YORK (TheStreet) -- We learned in an unexpected way that Twitter (TWTR) is looking to do an acquisition. Good. It should be. Twitter management has made smart small deals to this point since going public but has to do something bold.
This unintentional window into the Twitter C-suite came late Monday in a direct message (DM) tweet from new CFO Anthony Noto to CEO Dick Costolo that somehow went public.
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The tweet was about a meeting in a few weeks between Costolo and the CEO of an unnamed company that Noto hoped Twitter could acquire. In the message, Noto indicated the CEO of the other company had to be sold on the idea of selling to Twitter, and Noto had some ideas on what to say.
Of course, this "DM Fail" evoked a lot of titters on Twitter when it first occurred. Some of that is justified. We don't hear about Facebook's (FB) Messenger failures. This plays into the idea that Twitter, the product, is overly complex and prone to misuse when even the new whip-smart CFO makes a bumble like this.
But the idea is a sound one. Twitter needs to make a bold acquisition, and it should start with Pinterest.
I love Twitter the product and I believe the company will be very successful over time. I think the barrage of criticism of the CEO is overblown. But this company is fortunate that -- despite all the complaints about how its stock price is down from $70 to now under $40 this year -- Twitter still has a valuation of over $25 billion.
Don't say that Wall Street is being short-sighted with this company. It is being very generous with the valuation, and the company needs to use that to its advantage and start spending some big money on a big deal.
Think about the acquisitions Facebook has made since it went public and just weeks before when it did the Instagram acquisition. The company has been very bold. Many criticized Facebook CEO Mark Zuckerberg at the time of the Instagram, WhatsApp and Oculus deals for overpaying. But now they seem, on the whole, to be good deals.