Twitter, the messaging web site that has become an Internet sensation, is nearing a deal to close as much as $100 million of new funding from as many as seven investors, according to people familiar with the deal.
The investor group includes mutual fund giant T. Rowe Price and private-equity firm Insight Venture Partners, which are new investors to Twitter. The $100 million investment is about twice as much as Twitter was reportedly expected to haul in this latest round of fund-raising.
Other investors in this round include venture-capital firms Spark Capital and Institutional Venture Partners, which have previously invested in Twitter.
The investors are valuing Twitter, which has yet to generate revenue or finalize its plans for making money, at about $1 billion. A person familiar with the deal said investors are applying a similar value to Twitter as that applied to Facebook, which at one point was valued at $15 Billion. By some estimates, Twitter is expected to have 25 million users by the end of 2009. Facebook has 300 million users.
6:12 pm on Sep 24, 2009 (gmt 0)
Twitter is going to be hard to monetize if you ask me. Twitter by itself over the web is confusing to most people and it really shines when you run something such as tweetdeck with trending, channels, searches and all the discovery tools at your hands. However running tweetdeck the only way twitter could make money is by charging for the API and in doing that, they would probably stagnate their growth rather than accelerate it.
6:21 pm on Sep 24, 2009 (gmt 0)
my crystal ball says... random tweets from commercial sponsors will show up in your feed. just a few at first, then more and more - until they find a balance between being useful and being annoying. Like all media.
7:56 pm on Sep 24, 2009 (gmt 0)
what with all the craze around twitter? I even see marketers and stores create twitter channels...come on who are you kidding, who's going to follow your blue widgets blog, REALLY?...
httpwebwitch I think is onto something, they see it as a next best channel for advertising spam.
8:10 pm on Sep 24, 2009 (gmt 0)
The problem with ad injection is if there is ANY noise that you cant simply "unfollow" then the system dies. That is the very reason woot, dell outlet, gap and other retailers have millions of subscribers because it acts as a two way channel. If i have a problem with a woot that was just tweeted i could reply @woot can't buy, shopping cart failure and they get that. Its the two way interaction and voluntary process that makes twitter strong..
ad injection would be a deathblow... unless all advertisers are forced into participating in the two way communications.
8:43 pm on Sep 24, 2009 (gmt 0)
who's going to follow your blue widgets blog
I like to follow my web host for network updates, special deals, etc. I also follow Google, Matt Cutts, other interesting people in the web industry, and a few "celebrities" on topics of my interest. I was the first to consider it a waste of time but it's quite fun actually. It's like RSS feeds, but more interactive.
10:24 pm on Sep 24, 2009 (gmt 0)
It's like RSS feeds, but more interactive.
I think koan has just hit the nail on the head.
In terms of response, feedback and peer distribution, Twitter is to RSS what blog articles are to traditional newspaper articles.
4:03 am on Sep 25, 2009 (gmt 0)
Just keep throwing all that money away on a free service.
Bet the biz plan is they'll make it up on volume :)
1:35 pm on Sep 25, 2009 (gmt 0)
i still don't get it.
There is a recent study about Children who get spanked have lower IQs, what happens when the employers(9 to 5 jobs) finaly start saying no tweeter at work? Or is it based on a current economy where most of unemployed glued to their monitors?
A few hours ago we closed a significant round of funding with a group of investment firms that we're excited to publicly thank: Insight Venture Partners, T. Rowe Price, Institutional Venture Partners, Spark Capital and Benchmark Capital.
6:57 pm on Sep 25, 2009 (gmt 0)
It sounds a bit like Facebook. They are now "cash positive" but still losing money when it comes to expenses, tax etc.
Those buys investing in Twitter certainly have big chanoas