Twitter Valuations: Is It Really Worth $3 Billion

We are all very aware of how big the world of social networking is but who would have thought that Twitter would be worth $3 billion… I know I didn’t. Twitter currently has around 175 million users but will always be looking at new ways to get people involved. After all they want to catch up with competitors like Facebook who have 500 million users!

Twitter is currently considering a round of funding which would then pull the value up to the $3 billion marker. I always end up being a bit negative towards these humungous valuations because what does it really offer the world? It isn’t something that is essential so how can it really be worth so much?

According to Ari Levy and Brian Womack over at sfgate.com the $3 billion does also include investments from Digital Sky Technologies as well as Kleiner Perkind Caufield & Byers although neither party cared to comment. Similarly a Twitter spokesman in Sean Garrett declined to comments as well.

Head on over to sfgate.com and have a read of their article on this and let us know your thoughts in the comments below.