Monday, May 11, 2009

What’s Twitter worth?

PaidContent.org has an interesting analysis of how much micro-blogging service Twitter is worth.
Rumors have been rampant that Apple tried to buy Twitter for about $700 million recently, the article states. But based on unique monthly visitors and the purchase prices for YouTube, MySpace and Bebo, PaidContent pegs Twitter’s current value at $300 million. That’s less than the $500 million that Facebook reportedly offered for Twitter last fall.
Twitter’s business prospects are less obvious than those of video-sharing service YouTube and social-networking sites MySpace and Bebo. Plus, those services never faced the ridicule and backlash that Twitter is undergoing. Twitter is the butt of many jokes these days.
When Twitter poster boy Ashton Kutcher calls Twitter “as significant and paradigm-shifting as the invention of Morse code, the telephone, radio, television or the personal computer,” you know it’s a joke. (See story in TheDeal.com.)
Nielsen says Twitter’s poor user retention rate limits its overall Internet reach to 10%, according to the New York Times. (Twitter’s reach is now about 1.7%.)

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