Twitter Execs Value Site at $8-10 Billion (Report)
The company's leaders have reportedly had acquisition talks with executive at Facebook and Google, among other companies.
Twitter executives have had talks with execs at Facebook and Google to explore the possibility of an acquisition, the Wall Street Journal reported.
The messaging site has had talks with other unnamed companies as well during which the discussions estimated Twitter's valuations at a whopping $8-10 billion.
That's a significant increase over the last reported valuation of $4 billion in December. At the time, Twitter was said to be in the process of raising a huge new round of financing.
It also is an especially high number considering the company was founded less than five years ago and doesn't have a proven business model.
And Twitter estimates its revenue this year will come in at $100-110 million, up from $45 million last year, when the company actually lost money due to the costs of hiring staffers and data centers.
"Are these prices justifiable based on financial multiples? No," Ethan Kurzweil of venture capital firm Bessemer Venture Partners told the WSJ. However, startups like Twitter are building up a social-media business and are in possession of lots of information about their users, and "the market is valuing that mightily right now."
However, the WSJ reports that the acquisition talks so far have gone nowhere, according to people familiar with the matter.
Twitter, Google and Facebook all declined comment to the Journal.