If Facebook Is Worth $10 Billion, Twitter is Worth $1.7 Billion
Last week, Facebook took a $200 million investment that valued the company at $10 billion. So if Facebook is worth $10 billion, how much is Twitter worth? After all, Twitter turned down $500 million from Facebook late last year, and founder Evan Williams might not even sell it for $1 billion . But how about for $1.7 billion? That is the valuation we come up with when we run Twitter’s numbers through our new social network valuation model . The model takes into account the size of each social network’s audience in different countries and the average online spending per capita in those countries. Using Facebook’s$10 billion valuation as a baseline, Twitter would be the fourth most valuable social network after MySpace ($6.5 billion) and Bebo ($1.8 billion). Of course, that $10 billion valuation was for preferred shares, so $1.7 billion might be a valuation a strategic investor or acquirer would be willing to place on Twitter. If you use the $4 billion to $6 billion range Facebook’s common stock is being valued at in private sales, then Twitter’s valuation would come down to $671 million to $1 billion. And if you use Bebo’s 2008 valuation of $850 million as a benchmark instead, Twitter would be worth $781 million. So there is your range: roughly $700 million to $1.7 billion. And remember, Twitter may still have scaling issues, but it doesn’t have all the costs that Facebook has in terms of…
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