Twitter raises new funds: you’re worth $42!

by on January 24, 2009

TechCrunch is reporting that Twitter has raised more funds, this time with a $250 million valuation. That means that if you are one of the six million people on Twitter that you’re worth $42.

Sounds about right. I remember Kraft food executives telling me they spend about $40 to acquire customers (er, advertise). Congrats to the Twitter team!

  • Hey! Good to be worth something. But, really .. I was wanting to be a little bit more :) lol
  • Well, it follows that they've read The Hitchhiker's Guide to the Galaxy....
  • You could also value it on a per tweet model...

    1.1 billion and counting.
    http://popacular.com/gigatweet/

    A $250 million valuation means every tweet is worth 20 cents or so.
  • I'm worth more! Twitter recently turned down a half billion dollar acquisition offer from Facebook.:)
  • Of course Kraft customers would pay actually for their peanut butter
  • good job robert, cue someone making the "what are you worth on twitter" app.
  • Actually, the real question is: if Twitter would shut off my account, how much would I pay to get back on? Or if someone wanted to buy my account, how much would I sell it for?

    Shall we conduct a little hedonic pricing experiment? i'll start: I'd pay $50-100/year to get my account back. But I wouldn't sell it for less than $500.
  • Before a proper business model, I'd assume the worth would be more like minus 42 dollars. You know: 2009, the year of realism.
  • Well I liked the fact that twitter has raised more funds,I hope these would be utilized to make some much needed improvements to web-based twitter.I have mentioned the same in my post as a feature wishlist : http://www.abhishekrane.com/2009/01/24/features...
  • That's essentially the same per-customer valuation used in the heady dot-com days. I think I first came across it in the AOL/Time-Warner merger days when AOL was valued at something like $42 per member.
  • I may be worth 42$ to them...but the value they give me is worth far more. I'm winning in this deal so far ;)
  • A bank makes about $35-$40/account /year.
    Twitter brings more profit than any bank?
    Twitter is worth more than any bank?

    Seen the current state of the financial institutions it could be.
    Still Twitter is way overvalued.
  • Twitter's business model?

    If they want to go after big money, they've got to get less social and more business focused. LinkedIN has got a revenue model b/c they take advantage of big time business people who use their premium services to do research for their businesses.

    With Twitter being open source, I bet they'll be a lot of premium services that aren't necessarily owned by twitter, but will allow companies do better research on themselves, competitors and do market analysis on their customers.

    There could be a lot of interesting tools that search all the past tweets and see what was said, constantly monitor and organize this information...
  • Where do I apply to get the money? See the credit crunch? I'm skint!
  • I must add that there certainly is a big wad of real money - real business -laying somewhere on Twitter. Personally, I fail to see where it actually is; how to grab it.

    Should they provide walled gardens for enterprises?
  • Twitter is great, but I'm wondering if they are already in the same boat as Facebook and YouTube where monetizing is much harder than they expected even as our expectation of service and stability keeps increasing. Also concerned that Twitter is starting to feel the weight of abusers who are using the system to promote questionable biz schemes, tho hopefully the community can police this stuff as needed.
  • dantplayer
    Do you think a company like Twitter could go public, in a profitable way?
  • If I stop using twitter is there any chance I could get them to send me my 42 bucks?! ;)
  • $250 million must be nice but I don't see how they are going to make Twitter profitable without degrading the service.
  • Christopher Coulter
    In an amazing parallel-universe coincidence, KDE 4.2 hath been released, answer to everything, being that Microsoft has basically just copycatted KDE in Win7.
  • I'm still impressed by twitters business model. Micro Blogging, who would have thought!

    I use it about 3 or 5 times per week and am still amazed of how their model works.
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