Although it’s yet to earn any significant revenue, Twitter is about to get a major infusion of cash.
According to The Wall Street Journal, the microblogging service is about to close a deal for $100 million in new venture capital from multiple investors that will value the company at $1 billion.
At the billion dollar mark, Twitter has nearly quadrupled its valuation since early this year, when it raised $35 million in capital.
How did Twitter's valuation shoot up so fast? According to WSJ's report "A person familiar with the deal said investors are applying a similar value to Twitter as that applied to Facebook." Facebook, which has more than 10x the users of Twitter, was recently valued at $6.5 billion.
So now the obvious question: is it completely ridiculous to value Twitter at $1 billion, or does Twitter still have enough of a growth and revenue opportunity in front of it to justify the numbers? Share your thoughts in the comments.