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Posts Tagged ‘twitter is worth’

What Price A Twitter User?

On Monday I wrote about how a recent auction of Twitter stock on the secondary market had raised the valuation of the company to some $7.7 billion.

Prior to this I noted that Twitter had passed the 250 million user mark – 253 million to be precise.

This allows us to quickly work out a per user value for each Twitter profile – 7.7 billion dollars divided by 253 million accounts equals $30.80 per user.

What this means is that if Twitter was sold for that $7.7 billion, they could give every single user a $10 Amazon voucher and still have enough in the kitty to get some new paint for the office. Over five billion, if we’re counting, which should be good for at least two coats. And maybe some curtains.

Not that this is likely to happen. But as a concept, financially rewarding the individuals who make up the network isn’t as hands-across-America as it might initially seem. It’s worth observing that the actual ‘value’ of Twitter is dependent on two important things – one, the users, and two, their tweets. The latter cannot exist without the former, and the former produce all of the latter. Take away either of these vital elements and Twitter instantly loses all of its appeal and subsequently its value. Even if the tweets were preserved, at best you’d have a curious (and rapidly decaying) time capsule. And who would really want to buy that?

I suggest that you keep this in mind whenever anyone tries to tell you that the time you’ve invested on Twitter is wasted time. It’s anything but. This is your Twitter. You’re the critical piece in this valuable ecosystem, and it’s people like you who have built something incredible. Something that has and will change this world. And nobody can put a price on that.

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Twitter Now Valued At $3.7 Billion

Twitter has completed its latest round of funding – $200 million, which values the company at an impressive $3.7 billion.

They’ve also expanded their board, adding former Doubleclick head David Rosenblatt and Flipboard’s Mike McCue.

This new round of capital brings Twitter’s total funding to $360 million since the company was founded in 2006.

Read the full report at All Things D.