Twitter Is Not Worth 5 Billion

By Alex Wilhelm on August 30, 2009

Robert Scoble, a great technologist, recently kicked up controversy by posting an interesting piece on the value of Twitter. He points out that it is becoming cemented into the way businesses work, and is so useful that its value is now around $5,000,000,000. That is a lot of zeros for a company with no revenue.

I fully agree with Robert that Twitter will not have trouble monetizing. I also agree that Twitter is kicking Facebook’s ass in the business domain. To think otherwise is foolish. Twitter is getting bigger, and it is not going away. Robert is right, correct, and dead on until we reach his financial numbers.

He postulates that Twitter is worth “five to 10 billion dollars.” He qualifies this to a solid $5 billion at the end of his piece, so we’ll use that number. Robert points out that many businesses will in fact be willing to pay $100 a month for Twitter, or perhaps more. We will use $125 monthly, to give the rate and his thoughts a little breathing room.

Given that Twitter is an internet company with a total of three servers that are powered by goats running in large …

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