how sick is this? A company that had already raised north of 300 million and had never even made half as much in revenue gets... another 800 million? what for? how ridiculous is this?
I think you answered your own question. Without revenue, outside capital is needed for growth. And it's tough to tell if the valuation is dumb without seeing the terms of the deal.
What's even more ridiculous is that they did it even though there is now a competitor with a better product. Yes they have a much larger installed base but I do believe G+'s non 140 char limit and other amenities will win out.