Report: What Twitter Is Really Worth

by Burke Speaker | September 13, 2013 10:26 am

Analysts estimate that social media juggernaut Twitter could be worth up to $15 billion.

Twitter announced its intentions to file an IPO earlier today, which has sent insiders scurrying to decide just how good a bet Twitter will be.

From the Guardian:[1]

Companies are usually valued according to their underlying profit, but it is likely that Twitter is still loss-making as the company invests to grow. Because it has filed for a confidential initial public offering, financial details remain hidden for the time being.

So the easiest measure to use is revenues. PrivCo — which gathers information on private companies — believes the float will be “conservatively priced” at 20 to 30 times revenue. With 2013 revenues expected to exceed $500m, this would make Twitter worth between $10bn and $15bn.

“Twitter will learn from Facebook’s flawed playbook and do the opposite,” PrivCo’s chief executive, Sam Hamadeh, told the Guardian[2]. “Unlike Facebook, which waited too long to IPO (until its growth rate decelerated), Twitter will IPO at just the right inflection point: while revenue grows in triple digits.”

Twitter is still seen by many as ripe for continued growth. Research firm eMarketer reported that Twitter’s revenues will nearly double to reach $950 million by 2014.

  1. From the Guardian::
  2. the Guardian:

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