Thursday, February 10, 2011

Is Twitter worth more?

Facebook and Google have been rumored to have made a takeover offer. Twitter has been the newest hot sensation of social networking. As an advertised based business, like Facebook, Twitter has to find ways to continue to offer something different. Right now they are. Everything on the site is public and that has a different appeal to advertisers and Twitter users. It seems hard to imagine that upper level management would accept an offer even worth upwards of a couple billion dollars, they believe there is still so much potential. Currently valued anywhere between $8-10 billion, Twitter may seek alternative financing and consider an IPO in the near future.

"The company is having great ad-sales momentum right now, but we still think they need to do something big to increase usage and get more people seeing and interacting with tweets," said Debra Aho Williamson, an eMarketer analyst. "Most of their advertisers are just experimenting at this point; the challenge will be to get those advertisers to come back and buy more," she said. This is what Twitter execs need to figure out whether they have reached their potential as a blog or are there new areas to explore. Is Twitter worth more like $100 billion like people familiar with the company think?

[TWITTER]

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