Rumors are circulating that Google are close to completing a takeover of Twitter for a sum “well north of the $250 million valuation that they saw in their recent funding”.

I have already posted about why this is makes sense for Google, and considering that Twitter has seen a 974% increase in users over last year ((According to The Telegraph)), they look like a very attractive proposition.

TechCrunch have the full story.

UPDATE: Kara Swisher calls bullshit on the whole story and cites TechCrunch as having previous:

On July 28, 2008, TechCrunch reported: “Google In Final Negotiations To Acquire Digg For ‘Around $200 Million,’” and said there was a letter of intent signed.