Tech Bubble Fears Emerge as Companies Offer Billions for Twitter


Microblogging site Twitter has emerged as one of the most popular social media websites on the internet. In its short lifespan, Twitter has managed to acquire over 200 million registered users. This and the general popularity of social media websites has made Twitter a prime take-over target. Companies like Google and Facebook have shown more than a passing interest in acquiring Twitter and reports suggest that the price they are willing to pay gives Twitter a valuation in the region of $8-10 billion. A $10 billion valuation for a loss-making company with only $45 million in revenues reminds one of the dotcom bubble in the late nineties which was characterized by a frenzy to acquire loss-making and low turnover internet companies at illogical and absurd valuations. → Read More