There's a new rumor going around that Google is considering buying Twitter. Microsoft watcher Todd Bishop says that alarm bells should be going off in Redmond.
If there are any bells going off, they should be warning bells. Microsoft should resist the siren call of the latest Web 2.0 darling.
Microsoft doesn't neeed to buy Twitter. Sure, you could argue that using Microsoft's search engine inside Twitter and its adCenter platform to serve up ads on Twitter could help boost Redmond's market shares in those markets.
But I'd argue Microsoft could simply do a Twitter clone -- the same way that it has built its own Facebook-notification-like news stream into Windows Live -- and reap similar results. In fact, the Softies are hinting they've already been experimenting with adding Twitter-like functionality to its business software (possibly via SharePoint). I'd bet the Xbox and maybe the Pink/Danger mobile teams have been looking at doing their own Twitter-like services too.
I wouldn't be surprised to see Microsoft feign interest in Twitter to push its valuation up a few more million, just to make sure Google pays top dollar for the microblogging vendor if and when it buys Twitter.
Do you agree? Should Microsoft stick to its knitting? Or do you see a case that would justify the Softies spending $250 million or more for Twitter?