Twitter's $10 billion price tag

 
Talk isn't cheap: following 'low level' talks with media organisations Twitter's worth has been valued at $10 billion
10 April 2012

It is the hugely popular blogging website which is free for consumers but carries little advertising and is reputed to be losing money. So it must be worth... $10 billion.

That was the price tag placed on Twitter today as reports from the US claimed the social networking site has held "low-level talks" about a sale to either Google or Facebook.

The $10 billion (£6.23 billion) valuation will only add to the sense of a growing internet bubble which has seen Facebook itself valued at an astonishing $50 billion.

Twitter, with 175 registered million users, generated just $45 million in revenues last year, but was reportely loss-making after investing in new staff and technology.

The Wall Street Journal estimates Twitter's revenue this year at between $100 million and $110 million.

Twitter declined to comment.

Investors and established firms have demonstrated a huge appetite for internet companies in recent weeks, driving up valuations.

AOL bought the US news comment website Huffington Post on Sunday for £196 million while Amazon paid £200 million for British online DVD rental firm Amazon last month.

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