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Is Twitter worth 1 billion?

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Over at Mashable, Ben Parr reported on some crazy Twitter facts, as the Web site enters its fifth round of funding. Ben says new estimates place Twitter's value at $1 billion. He also made five observations, pulled from the Private Equity Data Center:

1. According to PEDC’s numbers, the price of a single share of Twitter has increased by 239,619%, from a measly $0.00667 per share to a much stronger $15.9824.

2. Twitter’s $100 million round is over 1025 times the amount of money they raised in its very first round of funding. In July of 2007, Twitter raised $97,500.

3. In five rounds of funding, Twitter has raised an estimated $153 million (some peg it a few million dollars higher). Since the day of its initial round of funding, Twitter has been given an average of $187,356 per day by its investors.

4. Using that same time frame and its current $1 billion valuation, Twitter’s worth has grown by $1,223,990 per day. If you start with the day of Twitter’s inception (the first tweet from Twitter’s Inventor and Chairman, Jack Dorsey), then Twitter’s worth has grown by around $772,797 per day.

5. Twitter has yet to make a single cent in profit. We’ll let you be the judge of what that means. Let us know your thoughts in the comments.

Holy kaw indeed! Read the full article.

by @noelleee


Comments (11)

Oct 04, 2009
stevesipress said...
Probably.Look at everyone using Twitter.
Oct 04, 2009
pinakis said...
This is the true picture of some out-of-the-world senseless investments in equity/VC market that often ends up in the pipes like in 2000 and may be more to come.
Oct 04, 2009
Roger Harris said...
Isn't all valuation subjective? Even if we assign a value on returns based on profit, there is never a guarantee that that value will be realized. The value is in the perceived worth. Moreover, such worth may not be translatable into real value, at least in the short term. Consider Google when it launched as a startup. Few predicted the value of "search" but when Google's business model emerged, everyone jumped on the bandwagon. Google's valuation sky-rocketed. Likewise, when Twitter's business model is clear, chances are its valuation will far exceed a billion.
Oct 04, 2009
Mark Jacobs said...
It is. There were four great inventions in communications history that shifted the way we used to send messages. Movable type, electromagnetic conversation (phone, radio, tv), the Internet, and Twitter opening up the many-to-many pradigm for real.
Oct 04, 2009
Emily Martinez said...
The idea of Twitter is worth that much. Time will tell whether this particular model holds up or whether a better source of fast communication comes along and outtwits Twitter.
Oct 04, 2009
Tim Sanchez said...
Hotmail was purchased for 400 million and YouTube was 1.4 billion.
I'd say 1 billion for Twitter is reasonable; and that's what confuses the hell out of me.
Oct 05, 2009
Chris Foley said...
Just a reminder - Twiter hasn't yet figured out how to make money, always an important consideration in the world of business.
Oct 05, 2009
Leah R. Garnett said...
Yes, it is. I agree w/what Mark Jacobs said above. This is a tool that enables an ordinary person to instant-message the world - and, in many cases, the world listens and responds. It's ground-breaking, and it changes everything about the way humans speak and are heard. It will make money soon enough.
Oct 06, 2009
Sethmil said...
Amazon.com
Oct 06, 2009
Cesar A. Jurado said...
It's an era for collaboration, right now twitter is worth lots more than money right now. Craiglist exceeded all prognostics, i don't see why twitter could not outtwit itself.
Oct 06, 2009
Vi Wickam said...
At this point, I wouldn't mind having been one of the investors in the first round offering. ;)

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