Twitter gets valued at $3.7 billion becoming latest web start-up. Twitter gets a new investiment valued at $3.7 billion. It is the latest web start-up that paves the way for next-generation online communications.
The company has nearly quadrupled in the past year, according to a new investment made in the San Francisco start-up. Twitter raised a round of funding that valued it at $3.7 billion. The company is now the latest young Web site in which private investors put a multibillion-dollar worth on the operation.
The rich valuation comes despite the fact Twitter is still working on ways to translate its more than 175 million registered users into a profitable business. “There’s no question that price is well ahead of any analysis of Twitter’s business today,” said Josh Hannah, a partner at venture firm Matrix Partners. While the three-year-old company has been slowly incorporating advertising into its service it hasn’t hit upon a formula as lucrative as the models of Google Inc. and Facebook Inc.
The Web company will earn just under $50 million in ad revenue in 2010, according to research firm eMarketer. That figure doesn’t include fees Twitter receives annually from Google and Microsoft Corp. to show tweets to users of their search engines. People familiar with the matter say the start-up earns millions of dollars a year from such fees.
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