Twitter is near a deal with a group of investors that reportedly believe the social media network is worth $1 billion. The deal is for as much as $100 million and is made by a group of investors that include a huge mutual fund manager named T. Rowe Price and a group of private equity firms and venture capital companies. According to the Yahoo news article, the deal is supposed to close soon.
I had no idea that Twitter could be sold for that much. There are always investors that are willing to pay top dollar for businesses or Websites. Twitter has the potential to make entrepreneurs thousands of dollars due to the fact the short messages can reach thousands or people.
Twitters first prototype launched in March 2006 and then went public in August 2006. Twitter has become a social media phenomenon and houses millions of Twitterer’s.
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How do companies know how much websites cost? I mean there aren’t any paid account options, so how can they possibly know that a company is worth what it’s worth? Thanks, just thought I’d throw that out there, because I’ve never really known the answer.
That is a good questions Elliot. Twitter does not really generate money and the latest investors just gave Twitter $100 million. There is a lot of potential with Twitter and how to generate money from it. Twitter could generate revenue from ads, or charge a small fee to users. Twitter has more than 54 million users worldwide. Huge mutual funds like T. Rowe Price would not give them that much money if they didn’t think it was worth it. At one point, Twitter turned down an offer from Facebook worth $500 million. That is a lot of cash.
Wow, Twitter is already really that big so investor dare to buy it with $1 billion. I bet that investor already know how to make more money in twitter.
I didn’t know that Twitter was worth that much until I heard the news about the mutual fund investing $100 million in the online giant. I was even more shocked when I heard they turned down a half billion from Facebook.
Dang twitter is geting big like myspace WAZ and google
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