New York CNN Business  — 

Could Twitter and Square CEO Jack Dorsey one day find himself working for Google? A prominent hedge fund manager hopes so.

Doug Kass, who runs Seabreeze Partners Management and invests in Twitter, told The Street’s Real Money last week that Google parent Alphabet (GOOGL) is a logical buyer of both Twitter (TWTR) and Square (SQ).

Kass said that the addition of Square and Twitter to the Alphabet portfolio could help Google boost its presence in social media and mobile payments – two areas in which Google has lagged rivals.

A spokesperson for Square had no comment about acquisition speculation while Twitter and Alphabet did not respond to requests for comment.

But there is merit to Kass’s argument. Alphabet recently shut down its struggling Google+ social network for consumers after The Wall Street Journal reported on a security bug that the company failed to disclose.

Google later admitted in a blog post that despite “a lot of effort and dedication into building Google+ over the years, it has not achieved broad consumer or developer adoption.” The company said 90% of Google+ user sessions are less than 5 seconds.

The case for a Twitter deal

Buying Twitter would give Alphabet, which already owns YouTube, a better chance of competing with Facebook (FB) for social media ad dollars.

Twitter could potentially benefit from having a bigger parent company as well. Since its initial public offering nearly five years ago, Twitter has struggled to add enough users to satisfy Wall Street.

Investors have speculated about a potential Alphabet-Twitter deal since 2015, when former Google executive Omid Kordestani left the company to become Twitter’s executive chairman.

So why does a Twitter purchase make even more sense now?

Alphabet could get Twitter relatively cheaply. The stock plunged more than 30% over the past three months after it said in its last earnings report that a purge of fake accounts led to a drop in users. Twitter’s still up more than 20% this year, but it’s a lot less expensive now than it was in June.

Hip to be Square?

A deal for Square could help Alphabet get a bigger piece of the lucrative mobile payments pie.

Alphabet does have Google Pay but adding Square and its money-sharing app Cash could make Alphabet an even more formidable competitor to the likes of the big bank backed Zelle, Apple’s (AAPL) Pay Cash and PayPal’s (PYPL) Venmo.

Square’s stock, like Twitter’s, has fallen lately too. It’s down 25% from the all-time high it hit this summer. That could make it more attractive as an acquisition, especially because investors have concerns about the company’s leadership.

Sarah Friar, Square’s widely respected chief financial officer, will be leaving the company in December to become CEO of social networking firm Nextdoor.

Wall Street has long wondered how Dorsey can effectively run both Square and Twitter, but they praised his great bench of senior executives at each company.

Friar’s departure weakens that bull case. CFRA Research analyst Scott Kessler, who has a “sell” rating on Square, wrote in a report that the loss of Friar “is a significant negative” for Square.

Former Twitter COO Anthony Noto left earlier this year to become the CEO of online student loan company SoFi.

What’s the chance that Alphabet would buy either (let alone both) Twitter or Square? Alphabet does have more than $102 billion in cash. But would it want to dip into that war chest?

Square is worth about $32 billion, and Twitter’s market value is $22 billion. Typically, companies pay more than the current value in deals. Alphabet could issue stock instead of using cash, but that would probably hurt the share price for existing Alphabet investors.

It’s fun to spend other companies’ money and speculate about possible deals, but it’s doubtful Alphabet will go after either Square or Twitter – even if those deals might make strategic sense.