Rumours that Facebook tried to buy Twitter are true, but the deal did not go through, as both parties could not agree on price or what the company would look like after the deal, Media Guardian's Jemima Kiss reported in an article posted by paidContent.

Over a year ago, Microsoft's proposal valued Facebook at US$15 billion, while Facebook's valued itself at $3.7 billion. Investor Peter Thiel told BusinessWeek that for the deal to go through, it was necessary to determine the value of Facebook's stock.

The deal "was reported at $500 million," with $100 million in cash and the rest in stock, Media Guardian reported. However, Facebook's valuation of itself was $8 billion to $9 billion, which caused Twitter to walk away.

"(Twitter is) worth a lot more than people think, it is," Thiel told BusinessWeek. Meanwhile, Thiel said that if Facebook exploited its full potential, it could make up to $1 billion a year in advertising.

Both Facebook and Twitter are still talking, although not as seriously, according to BusinessWeek.