Wednesday, December 3, 2008

Twitter Turns Down $500 Million Offer From Facebook

Evan Williams the new CEO of Twitter as of October has really hit the ground running in his newly acquired position.

First his site Twitter made huge headlines thanks to the way their site was able to disseminate information about last week's terrorist attacks in India.

Now, they have been offered a dream buyout by Facebook for $500 million. Not bad for a platform many in the industry said "lacked a sound monetization strategy."

Not so dreamy! Twitter, which reportedly has brought in virtually no revenue since it's inception and raised $20 million in venture funding, is saying "no-go" to the behemoth. Evan Williams said the courtship between the two Web 2.0 companies could be rekindled in the future.

Williams also said in a statement, "Twitter decided that it had too much left to do, beginning with figuring out how to make money."

Well I have a great strategy for how to make money...sell your company for $500 million to Facebook!!

I guess this is why i'm blogging in my tity whities and not running a top social media company.

9 comments:

Workpost Foreman said...

That's impressive. I don't know.. Twitter is pretty cool but, depending on the terms of the deal, 500 million is a lot of money.

Twitch said...

If they've gotten 20 million in VC funding, then the valuation of twitter is going to be measured in the billions, so 500 million isn't nearly enough to cover the expectations of the investors.

Anonymous said...

I think the biggest point being missed here is that the offer was in private Facebook stock. Facebook's valuation is largely inflated through their own venture funding by Microsoft. For a company who themselves cannot find a firm revenue model, I think it was a relatively wise decision on Twitter's part.

Anonymous said...

Yup... I'm with Anonymous.

I do however think that Facebook was dumb to turn down Yahoo's $1.5B offer a few years ago- and I think that'll be doubly true five years from now when facebook is worth a fraction of that.

Paul M. Watson said...

It was 500 million in worthless Facebook stock, not 500 million in greenbacks. Big difference.

Anonymous said...

people move on all the time... geocities...yada yada... parties ..etc....

i love the way people never learn..

ah well..good luck to them

Anonymous said...

I don't know. I would have been satisfied with 500 million back when i was a homeless rodeo clown but not anymore. Now I am a world class magician !

TKTC said...

This was just starting to go down at the Federated Media CM Summit in October. Crazy but I believe Evan when he says there's more room to grow. He's gonna go for a billion.

Aman Chaudhary said...

"this is why i'm blogging in my tity whities"

...Thanks for the visual.