News - Twitter now worth a cool billion

[HEXUS]

New round of funding reportedly values the micro blogging service at a billion dollars.

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[Fraz]

That's ludicrous.

The Web2.0 money-making model:

1.) Make cool service, possibly related to social networking.
2.) Attract millions upon millions of users.
3.) Sell it to some morons for many billions, and laugh all the way to the bank.
4.) Laugh even harder when actual worth of company becomes apparent to morons you sold it to.

[MrChimpy]

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The business is only worth what someone will pay for it, and given the massive exposure some mug will probably come along and cough up (but nothing like $1 billion). They'll then try to recoup their investment by various forms of annoying monetisation and their punters will leave in droves.

The key issue with twitter is it's a fundamentally simple application that can and has been re-implemented elsewhere. It doesn't even have the safety net of being a sophisticated and massively scaled app. It keels over at the slightest breeze given the amount of money they apparently have for "the service".

Of course the last problem for twitter is that it's patently another web-fad. Takes a year or so then people move on to other things because they get bored of reading the largely inane thoughts of each other along with a load of spam.