Bubble trouble? Not Twitter. At least, not yet.
Tuesday, May. 26 2009 @ 1:51PM
You don't need even 140 characters to sum up Twitter. How about this:
We have no revenue model or management team, but we're worth $1 billion!
As opposed to daily newspapers, which have revenue models and management teams and are worth nothing.
Poor little Twitter, the Wall Street Journal notes, "trips on its rapid growth":
Even as Twitter's users have jumped to an estimated 32.1 million from 1.6 million a year ago, the San Francisco company has just 45 employees, up from around 21 in January, and it has brought on only a handful of people with sales or business experience.
So, let's see . . . Twitter is free and it doesn't sell ads. In fact, as one analyst notes, "it has no current revenue stream." Yet, despite its built-in obnoxiousness, there are billion reasons to love Twitter — not the least of which is that it's such a beautiful little bubble boy:
Speculation continues as to the company being sold. Twitter raised $35 million from venture capitalists in February, on top of about $20 million previously raised. That month, Twitter received a $255 million valuation that makes it unlikely the company would sell for anything less than $1 billion, people familiar with the matter say.
