Twitter worths $4.5 billion?

J.P. Morgan to buy into Twitter, reports say

J.P. Morgan Chase & Co. (NYSE:JPM) has opened talks to buy a stake in microblogging site operator Twitter Inc., according to reports Sunday. The purchase would value Twitter at $4.5 billion, according to the Financial Times, while a Wall Street Journal report put the valuation at "more than $4 billion." The two reports, which cited unidentified sources familiar with the matter, said J.P. Morgan would make the buy through its Digital Growth Fund, which contains $1.2 billion to date. The Financial Times said the stake would amount to 10% of Twitter. The Wall Street Journal cited research firm eMarketer as saying Twitter is expected to generate $150 million in revenue this year.

http://www.marketwatch.com/story/jp-morgan-to-buy-into-twitter-reports-say-2011-02-27-194750

 

more power to em I guess, but it's hard to believe billions are so easily created by someone essentially stealing existing ideas and putting some code together with a server farm.

 

yes

 

In the time it took to read your post, Twitter depreciated nearly $100,000.

 

it is worth what people will pay for it. valuation is subjective.

 

So... Twitter is worth 28x gross revenue? Sounds like nosebleed .com valuations from 10 years ago.

 

Really? People will pay premium $$ to know somebody is, "getting a latte at Starbucks", or "taking a dump just now" ??

Good grief. What has our society become??

 

This is hype and advertisement, not valuation analysis.

 

Its happening all over again, these are ridiculous valuations to place on the 2.0 businesses, from twitter to facebook these valuations are just completely over the top, some are going to say its different this time, ITS NOT. The same thing is occurring as it did just a decade ago where companies are being overvalued and serve absolutely no purpose what so ever. The problem that no one seems to comprehend that these social networking 2.0 trends would NOT have valuations on them as high as they are today if it weren't for the trillions in stimulus to bailout the economy, I know some of you are like what is this guy talking about, its simple, with the bailouts, stimulus, QE1 & 2, all those special programs in place to prop up the economy are leading to the next bubble. A $4 billion dollar price tag on twitter would not exist at all today if it weren't for Bubble ben bernanke and his easy money policies and trillions being spent to prop up the economy. All this free money has to go somewhere right? $4 Billion dollars on a fucking pathetic 2.0 business, who the fuck uses twitter?

 

EXACTLY!!!!!!!!!!!!!!!