Google (GOOG) and Twitter (TWTR) Continued 'Chummy' Relationship Raises Eyebrows

Rumors that Alphabet (NASDAQ: GOOG) would acquire Twitter (NYSE: TWTR) have been in the market for some time. However, the continued "chummy" relationship between the two has raised eyebrows at Detwiller Fenton.

"Over the past 12 months, TWTR and GOOG have together established a number of collaborative and joint initiatives," analyst Alex Arnold commented. "All have represented improvements for users and advertisers, but these engagements also demonstrate a level of "coopetition" (=cooperation + competition) that we have not before seen."

Arnold notes the first wave of these relationship points came last year when Double Click Bid Manager announced that it would be including Twitter inventory in its exchange. Additionally new levels of accountability have been announced through the inclusion of 3rd-party tracking and attribution. Lastly, Twitter results were given exclusive real estate in Google search results.

Last week, Twitter announced an integration with AMP, Google's Accelerated Mobile Program.

Arnold explains: "The simple implication here is that Twitter content will load instantaneously on mobile devices. It does not seem to come as a surprise to the marketplace that Twitter would follow the requirements set forth by AMP - others have as well. However, the pre-existing relationship with GOOG combined with Twitter's policy to allow links to go to publisher site content may be another small example of alliances being drawn in the sand. Note that Facebook (FB) basically forces users to stay on its platform, so TWTR and GOOG are taking a differentiated approach."

The analyst also notes speculation that Twitter will begin giving priority to AMP links within its platform, which would be positive for Google.

Arnold said some believe that sides have been chosen, and it's team Google-Twitter vs. Facebook?

"With GOOG continuing to be knocked by the industry for not having a "social" solution for the future, perhaps the time is right to make it official and weave Twitter into GOOG for the long haul," the analyst concluded.

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