Twitter Closing New Venture Round At $1 Billion Valuation | Hacker News Reader

Twitter Closing New Venture Round At $1 Billion Valuation

techcrunch.com

7 pointsMazy5 comments

Facebook reporting that they were cashflow positive likely increased the certainty that Twitter could do the same.

The only problem (depending on your point of view) is that they've probably priced themselves out of an acquisition by all but a few of the companies who might be interested in buying them. Once you've raised that much money at that kind of valuation, the terms of your exit are fairly constrained.

But with a $1 Billion company at your hands, would YOU want to sell early?

Furthermore, Twitter has repeatedly said they do not want to sell and, instead, want to focus on making money that isn't coming from VC's checkbooks.

This reminds me of a comment I heard recently, I think from one of the presenters at TC50, where he said when referring to making money and what he wanted to do in 20 years, he said he'd still want to be working for the company, which was unlike what many of his peers would say (paraphrasing and possibly a quote of a quote from someone else). EDIT: I believe it was crowdfusion during their Q&A http://www.techcrunch50.com/2009/crowd-fusion/ - Video is at the bottom

Either way, it seems like the twitter guys are happy where they are and this valuation should allow them to do what they want for some time to come. It puts them out of the reach of most in terms of being bought, especially since their value will most likely only increase in the coming years.

http://news.ycombinator.com/item?id=826714

hello web 2.0 bubble. 1 billion dollars?!?! What is twitter doing that is remotely close to them generating any sort of revenue? The site stability is a joke among the engineers there (a fail whale monitor) , see their presentation at this years velocity, http://velocityconference.blip.tv/ . I understand that twitter is what's hot right now, but if facebook is just reporting cashflow positive and they have an ad model quite some time. How long will it take twitter to get cash flow positive when they seem to not have a game plan yet (atleast a public one)?

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