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

Twitter’s Advertising Plan Begins to Take Effect


Twitter’s advertising strategy, put in place early last year seems to paying off. A report published by research firm eMarketer puts micro-blogging site Twitter’s 2011 ad revenues at over $150 million; a threefold increase from $45 million last year. eMarketer estimates that Twitter’s earnings from ad revenues will go up to a whopping $250 million in financial year 2012. The report also adds that even though more than 50% of Twitter’s subscribers are based outside the United States, non-U.S. ad revenues will only account for 11% of its total earnings. According to Debra Aho Williamson, an eMarketer principal analyst, “In 2011, it must work overtime to give its early advertisers a positive experience.” → Read More