Twitter Reportedly Worth $250 Million
Twitter has had an explosive effect on how we treat our social media these days, especially when you consider its quick rise to prominence after first hitting the scene in 2006 and 2007. After a few years on the global scale, Twitter remains as sparse (140 words or less, please!) as ever, except on the bottom line: TechCrunch now reports that Twitter could be worth $250 million.
CNET reports that Twitter has been shopping around for some venture capital to inject a healthy dose of cash and finance Twitter’s ambitions of proving to have a viable business model. Says CNET:
TechCrunch is reporting Saturday night that Twitter may have signed a term sheet with one or more venture capital firms that would value the microblogging company at $250 million.
Although it did not provide specifics, the report cited “a source with knowledge of the deal.”
Not too shabby for a company built on the 140-words-or-less bullet point.
It’s not just Twitter’s reported 3 million-plus users that have driven the price up so high, but the possibility that Facebook was looking into acquiring Twitter last year.
If you follow the old adage that your company is only worth what someone is willing to pay for, then Twitter might be worth some $500 million – at least in Facebook stock.
Maybe it wasn’t just egregious Valley gossip-baiting when Federated Media CEO John Battelle asked Facebook founder Mark Zuckerberg earlier this month if his company was going to buy Twitter.
Kara Swisher of AllThingsD reported early Monday morning that actual acquisition talks held between the two companies have fallen through.
The deal would have been for $500 million in Facebook stock, Swisher wrote.
Why is Twitter looking for venture capital at $250 million instead of an easier $500 million in Facebook stock? One reason is that Twitter might not be quite sure $500 million in Facebook stock is really the same as receiving 500 million dollars. Another reason might be that Twitter is still looking to create a viable business model for themselves, boosting their value before they start looking at serious bids.
Some users have linked up their Facebook statuses with Twitter updates, so perhaps Twitter’s identity still hasn’t been carved out fully: is it a competitor to Facebook, or could it be used to expand on it? Or both?
With news that Bank of America has joined Twitter in order to offer customer service via its services, Twitter may be closer to a viable business model than you think. Bank of America is using Twitter as what could be described as an online help desk. Starbucks, Comcast, and Southwest Airlines have also joined in as Twitter users.
Lior Levin is back at Clickfire wit.
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