Facebook eyeing up Twitter?

More crazy money talk was being bandied around in the world of social networking this week as it emerged that Web 2.0 giant Facebook has been eyeing up Twitter as a potential acquisition.

Facebook, much the darling of the mobile space at present, if recent deals are anything to go by, is believed to have considered snapping up the micro blogging tool, but walked away over a high price tag.

How high? Anything up to $500m if some reports are to be believed – which injects a certain irony into the situation as potential suitors for Facebook have in the past been driven off by a high price tag themselves.

Around this time last year, Facebook was apparently valued at around $15bn, after Microsoft paid out $240m for a 1.6 per cent stake in the site. But the problem with these valuations is that there is little substance to them, as well as the fact they are tied to services that don’t make any money yet.