By Margaret Lyons
March 02, 2009 at 04:11 PM EST

Facebook’s Peter Thiel confirmed to BusinessWeek yesterday that the social networking site had been in talks to buy Twitter. According to Thiel, the potential takeover fell apart when Facebook offered to pay $500 million for the microblogging platform — in Facebook stock. At the time, Facebook said its stock was worth $8 to $9 billion; Twitter believed the value was closer to $3 billion, and an ongoing disagreement over the valuation eventually ended negotiations. BusinessWeek reports that Thiel won’t say exactly how much he thinks Facebook is worth other than to say, “It’s worth more than people think it is.”