We know that Twitter makes money off the search deals with Google and Bing, and it's a lot more than $5 million.
idk. Big money deals with a single or maybe 2 customers is insanely high risk.
How do we know how much they make from their deals? How do you know it's more than $5m?
How so? I'm guessing they have contracts, and MSFT and GOOG aren't the type to renege on their signed deals.
Say buzz takes off (don't laugh).
I'd just rather have millions of paying customers (advertising) than 2 customers.
Twitter: funding $160m, you say rev $25m
Twitpic: funding $0, rev $5m
In terms of scaling, how much larger is twitter than twitpic? $160 Million larger?
On the other hand: I personally feel Twitter's real value to an acquirer like MSFT or GOOG is the data. The rest of it is kind of gravy and it's only there to provide the data (ie- you need people posting things in order to have the search data). In short, GOOG basically got the value they needed out of Twitter for a measly 25 million dollars. Why would they ever acquire them at what's sure to be a number at least 40x that amount?... Except to make sure someone else doesn't hence cutting off their access to the data.