Because Twitter is not a public company, it is
hard to get an up to the second handle on its
valuation. With the absence of hyperactive
traders changing the value of a company with
each second of the trading day, financing rounds
or private transactions are often used to
determine how much a company is worth until
the day it finally has its initial public offering.
Take Twitter. One of the most well known apps on
the desktop and mobile space, Wall Streeters
salivate as though a damn has burst when they
think about taking the messaging firm public, the
same way they used to drool over Facebook. And
yesterday’s introduction of Vine, a service that
plays an endless loop of 6 second videos that
you’ve created, could end up pushing the value
of Twitter up even higher.
So just how much is Twitter worth? Based on an
offer made by investment firm BlackRock to buy
the Twitter shares held by two early Twitter
employees for $80 million (uh, make that ex
employees if the deal closes!), Twitter has a
valuation of $9 billion. That would represent a
10% increase since the last time the company
raised money in 2011, but would be a decline
from the $10 billion and$11 billion value placed
on the company after two secondary stock
transactions in 2012. The $9 billion valuation
works out to roughly $643 million for each one of
the 140 characters each tweet can contain.
Twitter refused to comment on the report.