Is Twitter Worth a Billion Bucks?

Check out this story I worked on with my colleague Stephen Baker.

Is Twitter Worth a Billion Bucks?
Twitter’s latest funding round values the microblogging site at $1 billion. Can the company become profitable enough—or profitable at all—to justify that valuation?

By Stephen Baker with Spencer Ante

Twitter’s home crowd can be pretty tough. When reports emerged on Sept. 24 that the microblogging service was close to securing $100 million in funding that valued the company at $1 billion, flurries of 140-character jeers flooded the service. “Nutty valuation,” wrote @Nicklippis. “I’ve seen this movie before,” twittered @ericclovesbacon. “It starred and ended in fail.”

True, a billion dollars for a company with virtually no revenue recalls the excesses of the dot-com era. The logic behind Twitter’s valuation comes straight from the very same school. It views Twitter less as a single company than as the base for a whole realm of communication and data. “It is an increasingly important platform for business and consumers,” says Seth Levine, managing director of Foundry Group.

Read the rest of the story here.


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One Response to “Is Twitter Worth a Billion Bucks?”

  1. rbnolan Says:

    There are strong arguments for and against a $1 Billion valuation. The fact is, that there are no good models for valuing a social media company that is going for market share before revenue.
    Full details at

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