Comments on: What is The Right Price For Twitter?

By: Y Facebook intentó comprar Twitter por 500 millones de dólares

Y Facebook intentó comprar Twitter por 500 millones de dólares — Tue, 27 Oct 2009 20:24:01 +0000

[...] Microsoft valoró a Facebook. Con lo cual, pese a la renuncia, parece un precio muy generoso (en Regular Geek han realizado una valoración real de Twitter, refrendado por el pensamiento de Kara, más próximo [...]

By: belteshazzar

belteshazzar — Fri, 19 Dec 2008 05:10:45 +0000

I just don’t get it, why would you pay that much for users that are probably already using your service (i’m sure that most twitter users would already be facebook users) … and twitter generates no income, nothing (how is it even still running?) … and has no plans to make money? wow, thats a great business model.

it wouldn’t take facebook a day to extend the status messages to be exactly like twitter.

By: Y Facebook intentó comprar Twitter por 500 millones de dólares | El-Informador

Tue, 25 Nov 2008 23:36:36 +0000

By: Svetlana Gladkova

Svetlana Gladkova — Tue, 25 Nov 2008 10:15:58 +0000

What is still more than surprising to me is the fact that we still value social networks based on the number of users they have instead of thinking what profit these users can generate for the network. After all, when someone buys a company they should consider its earning potential. Very strange given the current economic downturn.

By: rossrader

rossrader — Mon, 24 Nov 2008 21:34:00 +0000

Here’s the thing –

Twitter is Facebook without the noise. Unless Facebook figures out how to absorb that value, it may eventually have to figure out how to kill it.

My instincts tell me that Facebook’s popularity is waning and that it might not be able to drive growth and revenue to support its valuation. Very quickly, they might be looking back at the $15bn number as an artifact of “the good old days”.

If this is true, it isn’t automatic that Twitter will step in as the heir to the Facebook throne, but I’d wager that it is almost well positioned to do so. The next six months will be make-or-break for twitter in this regard.

By: ashok

ashok — Mon, 24 Nov 2008 21:33:03 +0000

Googling this topic leads to a few nice links, the best ones being found at GigaOM. I guess profit derives from selling advertising space only?

http://gigaom.com/2008/03/13/l.....valuation/

By: robdiana

robdiana — Mon, 24 Nov 2008 21:11:27 +0000

Ashok,
If I knew the answer to that question, I would not be writing a little blog like this. The only thing we can do at this point is base things on the current valuations of companies. Why is Facebook valued at $15 billion? I have no idea, but someone with a financial background came up with that number, and it is all we have to go on.

By: ashok

ashok — Mon, 24 Nov 2008 21:04:37 +0000

You’ve got me curious – how would one go about finding a reasonable price per user for a given social media service?

I use social media to find potential readers for my blog. The readers I’ve met that are invaluable number at least 20 or 30, esp. because they’re on social media themselves and aren’t afraid to promote my stuff without me even asking.

So is asking a company that has a large revenue base to shell out $150 a user reasonable? Or even several companies? Your sponsorship would have to be tens or hundreds of companies, and once that happens, there’s only so much attention any given user has.

There’s got to be a better model for assessing worth – I’m all ears right now.