Twitter becomes a profitable platform
Twitter has been valued at $3.7 billion (£2.38 billion), underlining how the social network – and others like it – is becoming an ever-more viable platform for businesses.
Social networking importance highlighted in Twitter valuation
Tuesday, December 21 2010 by Catherine Ferguson
Website promotion may start utilising Twitter more in the coming months, if the latest valuation of the social network is to sway detractors.
The micro-blogging company is now worth $3.7 billion (£2.38 billion) only one year after beginning its efforts to raise money, it has been revealed. The valuation comes after Twitter raised $200 million (£129 million) of finance in a recent deal with Silicon Valley-based venture capital firm Kleiner Perkins Caufield & Byers.
Other Twitter investors were also involved in the deal, which has highlighted how many more people may start putting money into such facilities. More companies are getting involved with Twitter and Facebook in recent months, so the success of both is hardly surprising.
The investment from affiliates is going help Twitter expand the company, according to its corporate blog this month. However, no clear indication has been given as to the direction Twitter will go with the money.
Meanwhile, Facebook was recently valued at over $45 billion (£29 billion) according to Sharespost, Reuters confirmed this week, proving that investors have every right to watch social networking services or harness them as part of a website promotion campaign.
In recent months,Twitter has made itself a more profitable platform by rolling out its Sponsored Tweets service, allowing advertisers to send out commercial messages and sponsor a hashtag, therefore ramping up website promotion.
It works well too. Finance News claimed that around five to eight per cent of messages were re-tweeted or used by members of Twitter in another form.
However, not all businesses in the realms of social networking are faring well in 2010. A recent deal between MySpace and Google’s advertising division has highlighted MySpace’s weakness in recent years after losing a lot of ground to Facebook and Twitter. Google is no longer offering guaranteed payments after MySpace was allegedly unable to make a profit for the search engine giant.
Living Streams “Improving clients’ profitability through better use of the internet”.