More Money for Twitter?
Rumor is Twitter hit up more than a few venture firms to pitch the $250 million valuation, and got more than one "no". But someone's bit, perhaps encouraged by Twitter's breakneck growth and the interest from Facebook. That means Twitter gets a new cash injection and time to figure out its business model at an even more leisurely pace.
I know everyone gushes over the number of people using Twitter, but that still doesn't add up to a revenue model. How many of the people using Twitter visit the website itself regularly? Even if they start tossing ads in the update stream, will that matter? I have yet to click on any of the ads Twitterific tosses at me.
The IPO market for startups is just about dead, between the high costs added by Sarbanes/Oxley and the general bad market we're in right now, and the bad market we're in has made a buyout from an existing firm less likely. I'd love to know what the people who tossed this money at Twitter think they'll get in return...
Technorati Tags: twitter, social media
Comments
[German Arduino] January 25, 2009 7:23:39.242
Ineresting thought James. With no knowledgment about this new money injection nor Twitter business model, I was asking myself from some days (I'm new on Twitter) what value Twitter added to my work. At this moment I think that nothing, only I'm lossing time.
Have sense (to me) use Twitter? Not by now. Then, Why I'm on Twitter? Well, let me say, only because several respected Smalltalkers and Entrepreneurs are here (as you, Dale, Avi, Carson, Blain, Colin, etc) but I'm thinking more an more that not much value to me Twitter. All the relevant things I must say are said on my blog. Also I use to follow all the blogs that i'm interested on (check the right bar on my own blog).
Then, what I'm missing about Twitter to have this heavy feeling that isn't useful to me, only a one more "time losser tool"?