Apple rumors: Twitter and Electronic Arts being targeted by the iPod maker

Apple (AAPL) may want to buy Twitter for as much as $700 million, Valleywag is reporting. And CNBC's Fast Money panelist Guy Adami said Apple is "eyeing" Electronic Arts (ERTS).

First, the Twitter story. Gawker's Valleywag says a "source who's plugged into the Valley's deal scene and has been recruited by Apple for a senior position says Apple and Twitter are in serious negotiations, with the goal of unveiling a deal by June 8, when Apple's annual Worldwide Developers Conference launches in San Jose."

If Apple buys Twitter, the story says, it's not about making money, it's about "making a statement."

Addressing why Apple would want to buy Twitter, Valleywag says the iPhone is the "obvious driver." Valleywag contradicts itself in the next sentence, saying, "Apple gets the benefit of Twitter-addicted iPhone users whether or not it owns Twitter. And it seems like an odd cultural fit, since Apple's hardly known for its Web prowess."

Valleywag did make another guess why the iPod-maker would want to buy Twitter: to get its web developers. They have "balked at working at a company like Apple, which may look innovative to the world at large, but seems fusty and hidebound to the Mission hipsters who build websites," the story said.

Apple does have the cash to make the deal, saying it had cash and securities of $28.9 billion as of March 28. If Apple did pay $700 cash for the deal, as the story suggests, it would be using the exact amount of money it generated in excess cash in the first three months of this year.

Why not take the amount of money you just pocketed in three months and buy 2009's hottest Web company?

Regarding Electronic Arts, last night Adami said there is "chatter" that Apple is "eyeing" the video game company as a possible takeover target.

Apple's top selling app so far is the game Crash Bandicoot, which is published by by Sony, not Electronic Arts, and developed by a company called Naughty Dog. That said, games are among the top sellers on iTunes and on the iPhone, so why not own the top game maker?

Anthony Massucci is a senior writer and columnist for Daily Finance. You can follow him on Twitter at hianthony.

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