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Twitter Ekes a Profit for 2009

$25M search deals with Microsoft, Google push it barely into black

By Harry Kimball,  Newser Staff

Posted Dec 21, 2009 10:30 AM CST

(Newser) – Twitter will be marginally profitable this year thanks to deals with Google and Microsoft that open up the social networking site’s streams to those companies’ search engines. The agreement with Google is worth about $15 million, while the Microsoft partnership should net Twitter around $10 million. The short message site is thought to have operating expenses between $20 million and $25 million.

Twitter pushed itself to profitability by cutting expenses, particularly how much it pays telecom firms to carry tweets. The site’s demonstrated popularity allowed it to negotiate better data rates. In a search for more money, the company also plans to introduce ads early next year, but they will be an “organic” fit, the COO tells Bloomberg. “Not, ‘Here’s the tweets and here are the ads.’”

Co-founder of Twitter.com Biz Stone.
Co-founder of Twitter.com Biz Stone.   (AP Photo)
Biz Stone, a co-founder and creative director of Twitter.
Biz Stone, a co-founder and creative director of Twitter.   (AP Photo)
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COMMENTS
Showing 3 of 3 comments
NxBigmouthery
Dec 21, 2009 7:59 AM CST
I dumped my twitter account a little while back, and now find myself there once a week so I can see if people like David Mitchell, for examplel, have written a column. He tweets a link to an Observer article, I use that as my shortcut. Other than that kind of thing, I find Twitter wholly empty and useless.
davjc09
Dec 21, 2009 4:46 AM CST
Preach.
Yourself
Dec 21, 2009 4:43 AM CST
“Not, ‘Here’s the tweets and here are the ads.’ but it's twitter, all there is now is tweets, so if you're gonna put in ads, then it's "here's a tweet and here's an ad" or "here's an ad before you see the tweet" at the end of the day, this is the emptiest "technology" of them all. I don't need to know that someone else is taking a dump, or driving to work, or listening to music, or in some stupid mood, let alone the fact that it's now going to be full of advertisement.

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