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Is Money-Losing Twitter Worth a Quarter of a Billion?
Posted Jan 26, 2009 06:16pm EST by Sarah Lacy in Internet, Media, Venture Capital, M and A, IPOs, RecessionThe hot story on the blogs this weekend was the rumored $20 million-plus that hot micro-blogging startup Twitter is raising from venture capitalists.
What caught people’s attention most was the rumored $250 million valuation for a
company without revenues, especially in a market when startups are all racing to
cut costs and get to profits fast.
But let's put this in perspective.
Last year, other fast-growing Web 2.0 sites easily got valuations north of $500
million. I argue that $250 million does reflect a recessionary valuation for
Twitter. My guest Om Malik, founder of GigaOm, says that's only if
Twitter is building a platform company like Facebook and MySpace. Either
way, we both say Twitter was wise to turn down Facebook’s $500 million entreaty
a few months ago. Are more acquisition offers on the way?
17 Comments
BONO - Monday January 26, 2009 07:02PM EST
nope, at&t should buy them and make them a feature part of blackberry
__A_YAHOO_USER__ - Monday January 26, 2009 07:05PM EST
well, the US government is over $11 trillion in the hole and the American people think it's worth zero but Uncle Sam said.....no! it's worth another trillion are so!!! Someone would have to be one sandwich short of a picnic to give a red cent to something call Twitter.
Omar - Monday January 26, 2009 07:50PM EST
Its only worth the future discounted cash flows that can put in the pocket of their investors. No cash flow, no value.
Yahoo! Finance User - Monday January 26, 2009 08:06PM EST
blah blah platform... I would not pay a dime for this cr@p
Cat_in_a_bank - Monday January 26, 2009 09:06PM EST
They are blogging, they are browsing, they are playing, they are web shopping, they are planning vacations! Ops, sorry no shopping any more, no more free money, but vacations are drastically cheaper.. Unfortunately they are cheaper but not free. So, who is going to work?.. Ah, sure they are not going to work, they are going to organize in blog-groups to manipulate market, or, at least, to speculate job contracts until finally money are bye-bye and it’s really necessary to find somebody who can do the job,.. for free.
Jeff - Monday January 26, 2009 09:53PM EST
Did you hear about the E-Trade Baby? Looks like the market got the best of him: http://www.celebjihad.com/celeb-jihad/e-trade-baby-found-dead-in-apparent-suicide
JC - Tuesday January 27, 2009 04:07AM EST
Now, don't make me laugh. 250 million valuation for a company that hasn't figured out its business model after few years of existence and soleley relies on VCs to keep funding it? LOL. It is a dud. it is dying. It is dead.
Goodluck - Tuesday January 27, 2009 04:08AM EST
IDESERVE NO COMMENT BUT YO ENCOURAGE U TO CONTINUE
Goodluck - Tuesday January 27, 2009 04:08AM EST
IDESERVE NO COMMENT BUT YO ENCOURAGE U TO CONTINUE
Mike - Tuesday January 27, 2009 09:39AM EST
So I guess every social network site is worth 250M? Come on people - the only value these 'clubs' can possibly have is to sell advertising space on these pages or harvest these users for permission marketing campaigns (which will alienate users). Good luck to you...
__A_YAHOO_USER__ - Tuesday January 27, 2009 11:36AM EST
Sorry.....what IS a Twitter?.........I really do need to get out more...wow!
Groupnex.com - Saturday September 26, 2009 05:00PM EDT
www.viewmycalendar.com is going to surpass twitter soon
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Jesse - Monday January 26, 2009 06:35PM EST
These aren't the Jedi you're looking for...