Posted on Thursday, February 10 2011 @ 21:57 CET by Thomas De Maesschalck
WSJ
reports Twitter has received an estimated valuation in the neighborhood of $8 billion to $10 billion. Quite remarkable given that Twitter is estimated to pull in a maximum of $110 million in revenue this year.
This for a company that, people familiar with the matter said, had 2010 revenue of $45 million—but lost money as it spent on hiring and data centers—and estimates its revenue this year at between $100 million and $110 million.
"Are these prices justifiable based on financial multiples? No," said Ethan Kurzweil of venture capital firm Bessemer Venture Partners. But these start-ups are building social services and have lots of data about their users and "the market is valuing that mightily right now."
