Social Networking is a growing bubble which will one day pop.
There certainly does seem to be a social media bubble right now, but a $200m investment in Twitter doesn't seem at all excessive to me, given the huge impact it has established in a relatively short time. It's not exactly an unproven social start-up, even if the monetization has yet to be fully worked out.
Every time I read about Twitter raising funding I worry. When we think how much they have already received, how long would it take to recover this sum, even if they found a good revenue source.
Sooner or later Twitter is going to have to stand on its own and actually generate revenue. I would love to be wrong, but I don't see it happening.
we all know it doesn't pay off, why don't investors know it? it amazes me time and time again. they should know better, right? is it because they got dumb money no one really cares about?
wait.. it does pay off, if and only if twitter is acquired for a large sum by one of the big guys. so they must be speculating on only that event, otherwise it makes no sense, right?
[edited by: moTi at 12:34 am (utc) on Dec 17, 2010]
There's one major monetization source that Twitter gave to Klout by defaulting on it so far - selling social graph data. Being able to pinpoint who is an influencer on a fine-grained level goes beyond anything an Acxiom database overlay can do in its value for savvy marketers.
200M, woo hoo ! Hopefully now I won't get an 'Over Capacity' message every 4th page view.
200M raised really means 200M more in debt, it's what they do with that money that matters.
Can they use it wisely enough to make enough to repay the 200M + interest and be profitable? Now we'll find out!
"make itself more profitable" Don't they mean make itself a single dollar in profit?
Google took a while to become profitable, but they had a good business model and people love google, and the size of the search engine optimisation scene reinforces this.
I predict the demise of twitter in 2011.