First, the scoop from Wall Street Journal, then my comments:
Even as Internet companies such as Zynga Inc. and Groupon Inc. file to go public, Twitter Inc. is taking a different route: It is continuing to tap private investors.
Twitter, the Internet-messaging service, is privately raising hundreds of millions of dollars in a new financing round that values the company at as high as $7 billion. Emir Afrati has details
The fast-growing Internet messaging service is currently in discussions to raise a new round of private financing, said people familiar with the matter . The move is set to raise hundreds of millions of dollars in a round valuing Twitter as high as $7 billion, said one of the people. It is unclear which investors are participating in the new round.
First, yes it is worth $7 billion and perhaps exponentially more. Seriously. If Facebook, which blows and will end up being only a digital singles bar where divorcees find the person they should’ve gone to prom with, is worth $90 billion then Twitter should be worth closer to $20 billion than 10. In fact I could construct a scenario extrapolating current usage trends and social impact whereby Twitter’s value ultimately exceeds Facebook’s.
Second, please stop comparing Twitter to Zynga (which is a game publisher) and Groupon (which is an accounting practical joke). Twitter is Twitter, the most important global communications tool since email and unlike email, it is all owned by ONE COMPANY.
Third, we all know that the big guys (Google et al) will never let Twitter come public, they almost have to take a run at it first. Right now, the company is all fun and games, but the prospect of a focused Twitter with billions of dollars in cash and a public currency should scare the hell out of everyone.
Fourth, don’t bore me about business model and cash flow projections. You did that when Amazon came out and bored me to tears. They had everyone and it was only a matter of time before it was a wrap for the whole e-tailing game. Twitter has everyone too, that’s an enviable position to be in while you figure the revenues out.