Twitter in talks with potential buyers Facebook or Google

[creative666]

http://www.guardian.co.uk/technology/2011/feb/10/twitter-talks-buyers-facebook-google

Twitter has been holding talks with potential suitors including Facebook and Google that could value the micro-blogging site at $10bn (£6.2bn), according to reports.

The early stage talks are not believed to have progressed far but, according to the Wall Street Journal, one thing has been agreed on: the loss-making firm is worth somewhere between $8-10bn.

[Rooftop]

the loss-making firm is worth somewhere between $8-10bn.

I still struggle with statements like that.

[Brad]

I don't know about Facebook as a suitor, but the history of the big portals like Google, AOL and Yahoo buying startups seems to be the kiss of death more often than not.  From Google's POV it might be easier to buy a social network than build one.

Dunno, if Google buys it I might have to move to Plurk for my personal microblogging.

[dogboy]

'Loss making firm'

Yeah I struggle with this too. Who the hell funds a biz this long w no real revenue? How does a company even get into this position.

IMO, I wonder if they are just going to tank one of these days. If you don't have a viable biz model now I wonder when it will come and what it will look like because by def it can't stay the way it is...

[Brad]

It sounds like Twitter's plans for their own advert network have hit a wall.  They rebuffed offers from suitors like Google when they seemed sure they could monetize Twitter themselves. Maybe they are not so sure now. Tricky since a lot of people use client software to access twitter and almost never visit Twitter's own pages.

[littleman]

Quotes like that remind me of the pre-bubble days.  I suppose that whoever tries to make them profitable can force in-line advertisements or drop/block support for twitter applications and force people to visit the website proper.  It'll crush their market share, but better to be small and profitable than large and bleeding.

[edo]

I don't think it's an outrageous valuation. Twitter are the 9th most visted website in the world and I see no reason why they can't get to 3rd or 4th in the next few years.

People thought Facebook was overpriced before Farmville etc. Now look how much they're valued at. The same will happen with Twitter - they just need to sort out an ad model that works for their userbase.

If I were Google I'd be biting off their hand. Real-time search is a perfect fit for them and they're not exactly short on cash.

Ed

[grnidone]

So, are you saying that twitter doesn't actually make money?  How do they pay their bills?