Profit, Schmofit: Twitter Valued at $3.7B
Latest round of fundraising quadruples value
By Kevin Spak,  Newser Staff
Posted Dec 16, 2010 8:25 AM CST
Biz Stone, a co-founder and creative director of Twitter, speaks at a special event to launch a Japan-based mobile version of the site in this 2009 file photo.   (AP Photo/Koji Sasahara)

(Newser) – Who says a business needs to make money? Not Twitter; the microblogging service has secured a new round of funding valuing the company at $3.7 billion, it announced yesterday, nearly quadruple what it was valued last year. That valuation comes despite the company’s inability, so far, to actually turn a profit off its 175 million users, the Wall Street Journal observes.

Twitter currently makes a little less than $50 million a year on ad revenue. “There’s no question that price is well ahead of any analysis of Twitter’s business today,” said one venture capitalist. But it is in line with the valuations being thrown at other buzz-generating web startups; Google recently tried to buy Groupon, for example, for $5 billion.