Twitter in the news

February 16, 2009
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With Twitter Inc’s recent raise of another $35 million, bringing their total to $55 million, with an estimated valuation of $200 million to $250 million the company has been making the rounds on the wire. This AP story today, Can all that Twitters turn to gold amid the gloom? says that “Twitter intends to start testing ways to make money this spring.”

[CEO Ev Williams] hinted the company is exploring ways to charge for expanded commercial access to Twitter, but emphasized that all personal accounts will remain free.

Well, I guess that’s as long as Twitter is still in business, that is. At some point the VC money will dry up and one of these revenue strategies is going to have to pay off.

[Twitter usage] was seen in just 5 percent of respondents between 45 and 54.

This matters for Twitter‘s financial future because most younger people don’t make a lot of money, which could make it more difficult for the company to appeal to advertisers.

The aritcle suggests that Twitter may be challenged to start charging for things users have been getting for free, as has happened with other sites like Yahoo!, Facebook and MySpace:

Its prospects are clouded even further by the resistance that Facebook and MySpace have faced as they have tried to inject ads into forums where people primarily goof off or fraternize.

Twitter’s revenue plans remain secret for the moment, but they are under a lot of pressure to fish or cut bait in terms of revenue generation.

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