Twitter Value Now $7.7 Billion: Follows latest shares auction

It was only in January that we brought you the latest valuation on Twitter, the popular social networking site. At that time Twitter was valued at $4 billion, that was one month after it had raised $200 million in funding. Now we hear the staggering news of a new valuation that puts the company’s value at $7.7 billion.

The valuation follows the latest auction of shares on Sharespost, with investors in the secondary market ready to buy 35,000 shares. The purchase is of Series B preferred stock with a price of $34.50 per share, according to Stan Schroeder over on Mashable. The secondary market allows people to trade with illiquid assets but combine that with fully diluted Twitter shares of 223.7 million and it results in Twitter being worth $7.718 billion.

Secondary market trading has also led to huge growth in valuation for Facebook over the last couple of year which means that Twitter is still standing small in Facebook’s shadow as far as value goes. The value of Facebook has risen from $9.5 billion in November, to $50 billion after a funding round in January and latest figures show Facebook’s value at around $65 billion.

We’re interested to know what you think of these latest enormous valuations for social networking sites. Can their worth be justified? Why not send us your comments using the box below.

  • Lilith Grant

    I think businesses that are able to see that social media/networking is where the market place is and is going are going to be able to make some huge gains, whereas those companies that continue to see these types of tools and sites as being not legitimate are going to find themselves going the way of Borders and Sears. I think the revenues that these social sites only reinforce the notion that these sites should be taken seriously by business. I mean really, get out your crystal ball – 5-10 years in the future, are these sites going away? It is like a company who refuses to see that the markets are moving to more powerful handheld devices.

    I read a really great Forbes Blog post last week by Adam Hartung (http://bit.ly/g44sjq) that is all about looking forward at these social media tools/networks from a business perspective. And there was a really great story about how Adam went to a small businesses marketing strategy meeting. The promotion plan was centered around traditional PR, supplemented with radio and billboard ads. Adam asked him for his social media campaign, and after he confirmed Adam was serious (Adam's question surprised him) he said he had a manager working on that. Adam asked about Facebook, YouTube, Linked-in and his Twitter communications, including hash tags? The head of marketing said if those things were important somebody had to be working on them. Two weeks from roll-out and he wasn’t giving them any personal consideration?!

    Incredible. So, yeah, they are valued high, but this is where we are, this is where the market is. And from my crystal ball, I don't really see it changing any time soon.