Twitter rejects Facebook offer

Just 24 hours after it emerged that Twitter and Facebook were in takeover talks the deal appears to have gone bad.

Twitter, the popular micro blogging service which allows users to post short snippets from the web and mobile devices about their activities as well as engage in conversations with other users, was being lined up for an all-share takeover by Facebook in a deal that would have valued the firm at $500 million (331 million).

However, the deal has collapsed after the two failed to agree on the worth of Facebook's unlisted share capital.

Privately-owned Twitter, which is based in San Francisco and started in March 2006, has quickly become a popular medium for personal expression, syndication of content and links, as well as a potential replacement for email and text messaging for some users. It has over six million registered users.

It was particularly notable for being an early barometer of public opinion during the recent US election.

Biz Stone, co-founder of Twitter has remained tight-lipped about the discussions, but has previously said that the company wanted to remain independent to expand on its messaging service and to try and build a viable revenue model.