Twitter in Licensing Talks with Google, Microsoft

Micro-blogging site Twitter is reportedly in licensing talks with both Microsoft and Google.

Ever since Twitter launched, people have been wondering how the company plans to make money. One possibility was that it would launch its own search engine but going up against Google, Microsoft and Yahoo! isn't something a lot of companies are eager to do. So what else can Twitter do to make money? Well, according to All Things Digital, Microsoft and Google are both speaking to Twitter regarding data-mining agreements and there are a several scenarios being discussed when it comes to compensating the site.

"…according to sources familiar with the situation–Twitter is in advanced talks with Microsoft and Google separately about striking data-mining deals, in which the companies would license a full feed from the microblogging service that could then be integrated into the results of their competing search engines. "

AllThingsD's Kara Swisher cites sources close to the situation who say the deal could involve a payment of several million dollars to Twitter or any one of a number of revenue-sharing proposals that would give Twitter a piece of the revenue made from search results. However the most important part of this news is that Kara's sources say Twitter is keeping the deals non-exclusive, meaning Yahoo! (or anyone else with an interest in all that data of who's linking to what) can get in on the action too.

Check out the full story here.