Twitter in talks to sell stake; deal values site at $US4b
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Twitter is in talks to sell a minority stake to a fund run by JP Morgan Chase, according to reports in The New York Times and The Wall Street Journal.
The deal values the site at $US4 billion.
Sources quoted by the Journal say Twitter, which has 200 million registered users worldwide, is profitable on annual revenue of $US150 million, largely from allowing marketers to sponsor some search results, and real-time search result deals with Google and Bing.
Did somebody say bubble?
While $US4 billion is a big number for a site with such relatively small revenue, it's not as large as some.
A Goldman Sachs' recent private equity investment in Facebook implied a $US49 billion value for the site.
Both the New York Times and The Wall Street Journal have sighted documents shown by Goldman Sachs to potential Facebook investors.
The show the site made $US200 million on revenue of $US777 million for its 2009 financial year.
Revenue for 2010 was $US2 billion.
The documents did not cover 2010 profit, but a source told the Times it was $US400 million.
NBR staff
Tue, 01 Mar 2011
Tue, 01 Mar 2011
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Twitter in talks to sell stake; deal values site at $US4b
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