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Twitter Gets $250 Million Valuation : But How Will it Earn Revenue?

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Loren Baker
Loren Baker SEJ STAFF
Twitter Gets $250 Million Valuation : But How Will it Earn Revenue?

Twitter, which has still not taken steps to monetize its API based microblogging social network nor add the Twitter search box to its web based user home pages, has received a cash infusion from IVP (Institutional Venture Partners) which valuates the company at $250 million.

According to a WashingtonPost.com version of a TechCrunch story, a source tells Michael Arrington that Twitter is likely to be raising a good bit more than the $20 million they have raised previously.

Fueled by a surge in desktop and mobile based products which serve as dashboards for Twittering, Twitter use has surged substancially as an instant source of gossip, citizen journalism, local reviews and a way to connect with friends that is totally customizable and non-intrusive. Hitwise reported last week that Twitter is now getting more visits per day than Facebook,

Twitter’s userbase is more of the 25 to 34 crowd, which usually sets the trends in emerging media, and is the core of Facebook, which had offered Twitter a half of a billion valuation last year, in Facebook stock.

Twitter has not yet figured out a way to monetize itself (although many have figured ways to make money from Twitter), but the eyes and thoughts of the post college young professional generation have their price and value.

Future questions do persist even after the latest investment in Twitter :

  • How will Twitter make money?
  • Will Twitter Search become monetized?
  • Will we see future partnerships with powerhouses like Google or Facebook?
  • OR will Twitter branch off into new services which rival the large networks?
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Loren Baker

Loren Baker

Loren Baker is the Founder of SEJ, an Advisor at Alpha Brand Media and runs Foundation Digital, a digital marketing ... [Read full bio]

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