WebGuild: Twitter Valued at $80 Million

Twitter received a market evaluation of $80 million after raising $15 million in venture capital. This amount seems a bit modest compared to other recent acquisition deals such as Google purchasing YouTube for $1.6 billion or CBS purchasing CNET for $1.8 billion.

However, it is still surprising considering that Twitter has yet to show that they can make a profit. Jason Calacanis reported that Twitter is not concerned given their potential to make money in at least three particular ways: occasional ads in the news feed, ads in the SMS and messaging platform and a paid subscription for a more robust service.

Maybe they have not yet rolled out these revenue-producing features due to their uptime challenges and potential advertisers seeing that as a problem. They had also projected an estimation of 100 million users, which might be a bit optimistic. Time will tell if users will continue to be interested in sharing their voices in an overcrowded space.

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