Social Networking

Twitter to Get a $1 Billion Valuation

For a simple site with a large following, Twitter definitely needs all the technical infrastructure it can get. But given the simplicity of its function, does Twitter really need $1 Billion? Well, whether we like it or not, Twitter is about to gain a $1 billion private venture round valuation.If you will recall Twitter has earned $35+ million earlier this year during a private venture funding. Benchmark Capital and Institutional Venture Partner led the VCs who put their stake on Twitter.

Techcrunch mentioned that Twitter has currently raised $50 million so a 1 billion valuation is not that all impossible to happen.

In fact, it looks like this might become a reality pretty soon since Venture Partnes is eyeing Twitter for possible investment.

Now, could anybody tell me please what Twitter is going to use the money for?  Is Twiter planning  to increase its character limits? Well, only time can tell.

579eb45f0fb1810cdbe2fdf8fb3acd7b 64 Twitter to Get a $1 Billion Valuation
Arnold Zafra writes daily on the announcements by Google, Ask.com, Yahoo & MSN along with how these announcements effect web publishers. He is currently building three niche blogs covering iPad News, Google Android Phones and E-Book Readers.
579eb45f0fb1810cdbe2fdf8fb3acd7b 64 Twitter to Get a $1 Billion Valuation
579eb45f0fb1810cdbe2fdf8fb3acd7b 64 Twitter to Get a $1 Billion Valuation

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7 thoughts on “Twitter to Get a $1 Billion Valuation

  1. I think we’re just beginning to see the value from Twitter and it’s such a big space that there will be room for more than a single player even as Facebook, Google, and others evolve. More thoughts here – http://bit.ly/J0Ep1, but to me this makes sense as a high risk, high reward bet by investors.

    In terms of what they’ll do with the investment, one can only assume that it will include expansion of the capabilities of their service, improvement of the stability of the platform (which is desperately needed), and implementation of whatever model they’re choosing to drive towards in terms of growing a revenue stream.

  2. Do u know how many servers twitter currently has in its datacenter?

    I presume that popular services like twitter, facebook, linkedIn need a LOT of horse power to support thier large user base

    These operations need more in hardware than software! And if you couple that with a team of programmers then expenses gather up dramatically.

    Would be hightly interested to know details on what hardware they have setup in order to operate such a “small” 140 character service!

  3. I believe that Twitter is built on the Amazon Cloud services (as is CloudProfile) including their Elastic Compute (EC2), storage solution (S3), etc. To some extent, that eliminates the historic paradigm of number of servers, etc. I believe that Twitter improving it’s services has mostly to do with needed improvements to their software, but they should also benefit as the cloud infrastructure improves.

  4. Twitter isn’t worth five hundred bucks.

    The number of SPAM accounts on Twitter has mushroomed since I started using. The follower count for the celeb Twitterers has also mushroomed well out of proportion–thanks to the automatic following that Twitter SPAM accounts begin with.

    I can watch my follower account drop fairly quickly and then track it back–sure enough, the same SPAM accounts started by the same abusive SPAMmer got deleted or inactivated by the Twitter minders. I never follow them back–they, invariably, feature a shortened link, begging for a click. No thank you.

    Twitter needs to charge a one-time set up fee, and the credit card used MUST be the name associated with the account. Nicknames are fine, but that nickname should be linked to the billing name on the card you set up your Twitter account with. It would eliminate SPAMmers (one account per card, two accounts per business credit card, etc), it would cut down on the spoof accounts for fake celebs, and it would make who you follow and who follows you far more important.

  5. I don’t understand what they would do with a billion bucks, twitter is not that big. Twitter is only big because the people have made it big, the service itself is mediocre at best. There’s nothing amazing about it, there’s nothing complex, there isn’t a development team that’s about to turn it into the internet’s next big thing, it’s just Twitter. I find a couple million in funding acceptable, 1 billion is just ridiculous.

    As for the post above, I agree with getting rid of spammers and things of that nature, a one time fee would work for that, but it would also reduce regular users as well, I personally wouldn’t pay it because I’m not big on Twitter.

  6. I certainly agree with what Norman has to say. Yes, there are spammers and spammy blog-lines (if I may call it?) sent to us at rapid succession. Sometimes you are lured into clicking on a link, you never realise that it could be ‘just another pay me something in return for this’ type thing.

    But, to charge the users seems absurd. I mean, look at Orkut, Facebook and even Myspace, I don’t see any PAID users unless of course you are thinking of marketing biz through affiliate and paid advertising.

    Yes, the service has just to do with receiving micro-blog info from the ones you follow and you ‘tweet’ your lines so that others can read. Other than that nothing substantial has taken place, yet its a big HIT.

    If the numbers are right and if Twitter has already earned a substantial amount, then even I am baffled to know WHY do they need a loan or valuation amount?

    Maybe they are thinking in terms to expand their social characteristics? Add some features that integrate with other social medias?

    Well, we got to wait and watch.

  7. Hi All,

    I have written an article about this that you may find interesting.

    During my reserach for this article – i gathered that Twitter weren’t actually receiving $1Billon dollars. But the stake that private equity companies bought for about $250million valued the total company at $1Billion.. this was essentially going to be used to pay the new board of directors they have employed for the ‘strategic vision’ i.e. how to make Twitter profitable without advertising too much..

    personally – i feel that Twitter is over valued…

    Please have a read of this article – and see what you think?

    http://behindthefinance.blogspot.com/2009/10/twitter-baffling-valuation.html

    All the best.

    Paul