Apple 'could acquire Twitter'

Rumours have been circulating that Apple is set to buy Twitter.

Twitter is reportedly the subject of a takeover bid being planned by Apple as it looks to cement links between the social networking site and its iPhone device.

Reports on a number of digital media websites suggest that Apple could offer $700 million (£464 million) for the micro blogging service, which has previously attracted the attention of Facebook and Google.

Both TechCrunch and Valleywag claim to have spoken to a source close to Apple who said a deal could be completed by early June to coincide with its annual Worldwide Developers Conference.

The $700 million offer would be a full cash bid and would be substantially higher than the $500 million offered by Facebook in November last year.

Apple's interest in Twitter stems from the popularity of Twitter-related iPhone applications such as Tweetie, the Telegraph reports.

However, there has been much scepticism surrounding reports of any commercial agreements between the two, with many analysts doubting the validity of the claims.

According to Fox News, Wall Street Journal reporter Kara Swisher expressed her own uncertainty, pointing out that Apple and Twitter have little in common.

She also pointed out that a month ago there had been rumours about Google buying Twitter, which turned out to be untrue.

Meanwhile research from Nielsen Online shows that 60 per cent of people who sign up to Twitter stop using the site one month after joining.

By comparison, retention rates for sites such as Facebook and MySpace in their early days were significantly higher at around 70 per cent.