it's always easier to raise money when you don't need it.
Oi, that doesn't necessarily mean it's a good idea. What Twitter desperately need right now is a way to make money (and taking it from VC's don't count). If they want to justify a $1 BILLION valuation, they need a clear way to make a lot of money.
My prediction: they're looking to buy a company that they think will make them money. While one might hope Benchmark Capital might pass down some wisdom from AOL's botched "best acquisition EVAR" fiasco, I have a bad feeling about this. As it stands now, my feeling regarding their technical competence tells me the hypothetical merger will be tougher than anticipated, and history will see Twitter as the shining example of the "Web 2.0 bubble".