Heck, Maybe Yahoo Will Buy Twitter?

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Speaking via video link to the Reuters Global Technology Summit, Yahoo Chief Technology Officer ARi Balogh has indicated that Yahoo is looking to be a bigger player in the social media scene…and that the company is likely to increase its presence by acquiring existing social media properties as well as trying to roll its own in-house. Balogh indicated that the recent downturn in the world economy means its a comparatively good time to be buying up Internet properties and startups, as valuations have declined and skittish investors are looking to protect what dollars remain.

Although Balogh declined to reveal the names of any companies Yahoo has been speaking with, he “guaranteed” Yahoo would be making acquisitions in the area. It’s no secret that the massively popular microblogging service Twitter would be a feather in the cap of any major company looking to make an impact on the social media scene. Although Twitter has as yet failed to earn any money, the company says it is working on plans to monetize the service, and it has turned down takeover offers in the past.

Balogh also conceded that Google dominates the Internet search arena, with Yahoo at a distant number two with approximately a 20 percent share of the U.S. search market. Rather than trying to beat Google at its own game, Balogh indicated Yahoo intends to reinvent search to be a richer search that can serve as the core of users’ online experience. Of course, Yahoo has been in talks with Microsoft about partnering on search; although relations between the two companies have been frosty since Microsoft’s abortive takeover attempt that slowed both companies’ momentum in 2008, newly-installed CEO Carol Bartz and Microsoft CEO Steve Ballmer have reportedly spoken about working together on search technology.

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