Social-networking web site Facebook is reported to have abandoned its attempt to buy Twitter, a micro-blogging service.

Reports have suggested that Facebook offered Twitter's negotiating team $500 million of Facebook stock in return for control of Twitter, which has been enjoying a phenomenal rate of growth.

Twitter's negotiating team is reportedly not convinced about the value of Facebook stock being worth that much, given the site's 'paper valuation' is significantly lower than the $15 billion Microsoft had thought it was last year. At the time, Microsoft invested $240 million for a 1.6 per cent stake.

The lack of consensus finally lead to talks breaking down, with reports suggesting that Twitter's founders, Evan Williams and Jack Dorsey, are still exploring the revenue potential of their micro blogging service.

Twitter's count of registered members zoomed 600 per cent last year, with over six million users sending messages, called Tweets, to friends within the Twitter community.

Facebook has over 120 million users, and is looking to offer diversified products and services to consolidate its revenue stream.

Reports suggested that Facebook is still keen on some kind of a deal with the company, and would not like to see it go into the hands of any other company. However, they also suggest that its failed bid may have alerted companies such as Google, Microsoft, and telecom operators to the opportunity that Twitter presents, and those companies too would like to use its loyal user base.