Quantcast

The Web Weighs In On Twitter’s $1 Billion Valuation

The good, the bad, and the funny

Get the WebProNews Newsletter:


[ Business]

We first reported that Twitter was raising funds at a $1 billion valuation eight days ago.  Since then, the amount of money Twitter’s supposed to be raising has doubled, and more details about who’s supplying the cash have surfaced.  As you might imagine, all of this has generated quite a lot of discussion.

What are your thoughts on Twitter’s reported $1 billion valuation?  Let us know.

Twitter Logo

Below, we’ll try to provide a roundup of people’s reactions.  Fair warning: incredulous takes appear to outweigh supportive ones by a significant margin.  And also, in case you’ve missed all of the big headlines, here are the latest facts as reported by the Wall Street Journal: Twitter is raising $100 million from investors including T. Rowe Price.

As for responses, Jason Fried‘s Onion-like comeback is perhaps getting the most attention.  In a fake press release, he wrote, "37signals is now a $100 billion dollar company, according to a group of investors who have agreed to purchase 0.000000001% of the company in exchange for $1."  The piece has received more than 160 comments, most of which amount to pats on the back.

Then there’s the observation of Dan Frommer and Kamelia Angelova to consider.  In an article titled "Twitter Raises Cash Pile As Traffic Growth Slows," they noted, "During August, the company attracted 55 million unique visitors (worldwide) to Twitter.com, according to comScore.  That’s up about 3 million, or 6%, over July.  That’s solid, but nothing like its go-go month of April, when it grew by 13 million uniques (~70% m/m) or June, when it grew by 7 million uniques (~20% m/m)."

Still, there were some neutral and even positive remarks about the investment round.  David Carr just went for a sort of comedic approach with the following tweet:

Then Larry Dignan raised a very good point about T. Rowe Price’s involvement.  "This mutual fund firm, which I know well, isn’t exactly a run-and-gun investment house," he wrote.  "These folks play long term and tout planning for the long run."

So perhaps Twitter’s strategy to make money – which at this point, may consist of selling premium accounts and/or data analytics services, along with introducing ads – is further along than most critics thought.  Anyway, we’d be interested to hear your opinions concerning the $1 billion valuation in the comments section below.

The Web Weighs In On Twitter’s $1 Billion Valuation
Top Rated White Papers and Resources
  • http://texxsmith.com texxs

    Advertising revenue = $0.00

    Subscription Revnue = $0.00

    Potential for adverting revenue = $0.00

    Potential for = 2.99per month for 1% of it’s users.

    x20 years = Twitter’s real value.

    anyone saying substantially different is a fool, hereby declares Texx Smith.

    • http://cannes-or-bust.com/ Michael

      These figures are silly. Texxs has a better approach. We have been here before, with Skype notably. Twitter is very good and very popular. But billions?

  • http://onlinesurveysforcash.org Steve

    Twitter is an easy target as their current business model is like the dot com bombs from the late 1990s that never made a profit.

  • http://www.dotCOMReport.com ppc tips

    When Twitter starts selling premium accounts people may moan and complain, but they are going to pay. Twitter is going to make lots of money there is no question.

  • Top Dawg

    I’m going to keep it real for yall’. I can’t allow another one of these bubbles to create and destroy a fortune of mine. Listen up, internet world. This is who I am, anonymous style, I come from the earliest of silicone valley money, raised on the same street that has more influence in this world, than anyone not on the inside can even imagine. Out of this group I’ll tell you what, Silicone Valley is almost at the point of declaring who is new money and old money. My generation and my true peers are competing for this status, flat out, no joke. We all have good ideas that are going to change civilization as we know it for our gain and future generations (let’s not kid ourselves right???) whether yall like it or not. I’m sitting on a idea that is going to advance civilization fifty years from what it is today in the matter of 6 months it will be done, and will release it some 6 years from now after fruition of it profitability has reached it’s limit. I’m working on that very programming/invention right now in my dorm room every night at my super elite college. Here is the sad part about Twitter, Facebook, Myspace, I never have or never will own an account from either of these hacks. Yall’ want to know the real truth about these companies????????? I don’t think you do. I can’t even tell you the first thing about what twitter is or what it does or why you would ever want it/ need it. That my friend is why those dollar figures are being overinflated and going to cause another bubble!!!! Because the truth of the whole damn thing is they are not creating anything you can ever hold in your hands, past down from generation to generation, they are only creating a fad, that can only exist until human nature gets bored with it, and it will happen, do honestly seeing yourself glued to your twitter account as you are now, if you are addicted years from now???? Give me a break, they have created nothing but human addiction that will come and go like MC Hammer Pants. They virtually have created nothing and convinced the economy it worth a Billion dollars!!!! And the worst part is you think the bank stole our money in the bailout. Dear Joe 6 pack, It’s my sincerest apology that you have been duped by basically everyone, if the product is not in your physical possession, it really does not exist and it basically siphoning your money out of your pocket under you nose in a way you cannot ever comprehend.

    Sincerely,

    The one guy that is from the upper crust of society on the side of the middle class….. I’m probably the only one that truly exists

  • http://www.chipsouza.com Chip Souza

    I mean to think that 56 million unique visitors went to the very same chat room. AOL was doing chat rooms for 2.95 a minute back in the antique days of the internet, which really was just another business model of the ham radio.

    So, perhaps Twitter is not “the killer app”. Chat rooms, ho hum….been there, done that. but…………one chat room for the entire word? Think about it.

    One place to go that tells you what is on everybody’s mind in real time, right now. I’d say that they are holding the cards, and a billion dollars is worth it. So, how much is another planet willing to pay for what’s on the Earth’s mind?

    The value will be in measuring the aggregate thoughts in mass.

    La valeur sera en mesure de la pens

  • http://articles.skybits.com Laura Gullett

    Yeah I helped Twitter make their numbers so where is mine too? I never made a penny from Twitter yet, nor found any honorable followers. They just use people to tweet one way to, and never give back any substance in return. So I can’t afford to spend tons of time in Twitter just to play around. I have real life things to take care of, that my followers don’t care nothing about in my life.

    Laura

  • http://officialsafetyandsecurity.com Official Safety and Security

    I use Twitter mainly to socially market my web site, http://officialsafetyandsecurity.com, so I’m always interested in what’s happing there. Thanks, Doug.

  • Amirrah

    Twitter is not a fad. It’s a new twist on technology that has been around for quite some time.

    How many people have cell phones and sent text messages? Almost everyone, and they are paying a lot of money to do it. How many people use instant messangers? A lot of people.

    Twitter combines the two in a new and much broader reaching way.

    How many people want to advertise? Everyone, because everyone has something or knows something they wish others knew. Do people wish they could talk to their favorite celebrity? As seen on at a Star Trek convention, people will line up and pay $200 for one picture of themselves with William Shatner or Patrick Stewart.

    Twitter let’s one person advertising to thousands in one second. Twitter let’s you talk to celebrities too.

    People will pay for premium accounts on Twitter too, if it’s done right. Wider advertising, more followers, the real chance to talk to a celebrity… ? All good reason for a premium account.

    Twitter makes no money right now? WRONG. People pay $7,000 for an “expert” to get them followers on Twitter. People make thousands by advertising a new movie or a new store. The money is already trading hands rapidly.

    Hate it all you want, but it is worth money, as is Facebook (though in a different way). Facebook makes profit off the banner ads; Twitter could too. Wake up and realize these “fads” have been here since ICQ and Geocities, then eBay and Paypal, now YouTube, Google, and Withoutabox. They’re as old as the internet, and the good ones are STILL being used, 10 and 15 years later. None offer something you can “hold in your hands”, but all offer a service and all improve communication between people.

    That’s my view, as an independent marketer. (i.e. I advertise comedy short films like www.normallythisweird.com and on a zero budget) Twitter has already helped people like me, and in a very real way. =P

    • Guest

      Twitter may have helped you but like a lot of technologies it will go away. Remember Geocities? Angelfire?

      As a Twitter user for close to 4 years now I am officially over it. I don’t care about people’s cats or what they had for dinner. This window into people’s lives is too much and factor in the marketing spam from businesses and friends and you have a system that is destined to fail like every other social experiment. Once it reaches the masses and the vultures come in you’re counting the days until the great exodus to the next big thing.

      Twitter has opened an eye on my quasi friends that I didn’t really want but was intrigued to get to know them. I learned about their life, love, religion and political views. I’ve been an audience to their constant nattering about sports and music they like. I am equally guilty of this as Twitter offers no filter, no ‘Are you sure you want to Tweet this?’ but at the end of this experiment I really don’t care that much about these things. I want these things to stay hidden. I don’t want to know how you feel about health care. In this little learning phase of quasi friends I have found that I’ve passed judgment on others and grown to despise people simply from having to constantly hear about their life. Oh and don’t dare unfollow someone that lives in your town. Oh no, they will confront you and ask you why but you can’t say ‘I find you annoying’ Pre-Twitter these feelings really wouldn’t be known unless we spent a great deal of time with each other. You could say Twitter was about being new and discovering things about people you know or didn’t know but after all this I just don’t care and I believe you will see a lot of people will start to feel the same way.

      Businesses, Marketing professionals or your friends masquerading as marketers have hit the last nail in the Twitter coffin. I’ve been part of a few new social atmospheres and they all end up the same: Everyone is excited to be a part of something new and learning from each other. We begin to grow relationships and help each other out, telling each other about this and that. Soon new relationships begin some turn into partnerships. People begin to figure out how to make some money but its on the up and up because everyone is in tune with each other, no one takes advantage of this. Soon marketers find a free stream to market to and enter. Then businesses enter and set up shop. Next thing you know it has gone corporate and people realize that they could make more money if they didn’t have that dead weight of a quasi friend who votes for the Right and hates Public Health Care. Soon it begins to eat itself and simply crashes and burns

      Mark my words Twitter will be a baron wasteland in the next couple years

  • Join for Access to Our Exclusive Web Tools
  • Sidebar Top
  • Sidebar Middle
  • Sign Up For The Free Newsletter
  • Sidebar Bottom