Twitter Valued At $3.7 billion
 

Based on the latest $200m in funding.

Twitter has raised $200 million of financing in a deal that values the microblogging company at $3.7 billion, less than a year after it began its first serious efforts to make money.

The funding, from Silicon Valley venture capital firm Kleiner Perkins Caufield & Byers and existing Twitter investors, underscores the high hopes that investors have for Internet social networking companies.

"It's a huge multiple. But the idea is that (Twitter's) scale can be monetized," said BGC Partners analyst Colin Gillis, who estimated that Twitter's annual revenue was currently under $100 million.

The money will help Twitter expand the company, Twitter said in a post on its corporate blog on Wednesday. The blog post did not elaborate and a spokesman declined to offer specifics.

http://news.yahoo.com/s/nm/20101216/ts_nm/us_twitter

A valuation based on the money they have raised and not their actual profit. Cute.

It is the old school late 90's way of valuating a site. Put it up, get users then guess at the value and spend spend spend.

Unless they can put up some serious numbers, that market cap sounds like a bubble.

and remember when youtube started everyone was laughing at them

I'm not laughing at them. I like Twitter. I never laughed at YouTube.

Fuck Twitter. Groupon is a money making machine!

As far as I'm aware YouTube has still yet to make a profit for anyone other than the guys that sold it to Google. The only reason it hasn't gone under is because it is propped up by Googles huge wad of cash.

Pretty much. Internet-changing site it may be, hugely profitable it is not. Twitter is in pretty similar territory, except I wouldn't be surprised if when all is said and done, Twitter will rise for a bit more then tumble down to the next big thing while the owners stay with the sinking ship wondering why they didn't sell it when it was near its peak. Meanwhile, the Youtube guys and their lineage don't have to worry about shit for a looooooong time.

I read an article a few months ago about how YouTube is actually making more money than people think since Google gets the bandwidth for damn near nothing. I'd dig up the article, but I can't be bothered...

how does twitter make money ?

Facebook on Track for $2B Revenue in 2010

http://mashable.com/2010/12/16/faceb...tent=Bloglines

If you ask me one good web developer can progream that site in about two weeks. Plus, much like mySpace and Friendster, Twitter is a gonner.

It's so ridiculous. It's a populairty contest without any form of monetization.

id sell it for that price! lol :1orglaugh

If Youtube still isn't profitable with all that advertising they have now, I don't like their chances.

It's funny, FRED is making more profit from Youtube than Google is.

That may be the case. I haven't read anything about them in a while and Google does have a ton of bandwidth so they may well be profitable now. The article I read a while back talked about how they lost about a million dollars a week on it, but they didn't care because it gave them other things they would be able to use and monetize down the road.

Editing. Just found this article that says it looks like they will start seeing profit from YouTube this year. http://www.physorg.com/news202736127.html