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Twitter To Buy TweetDeck For $40 Million – $50 Million

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Re: Twitter To Buy TweetDeck For $40 Million – $50 Million

#21

Post by truthtechnician »

jonursenbach wrote: post #9
timjahn wrote: post #6

A company that doesn't make money buys another company that doesn't make money. The Silicon Valley economy exists entirely on its own with no relation to the "real world".

What makes you think that Twitter isn't profitable, or at least has some incoming cash flow that isn't pumped in by VC or the secondary market?

I'll bite. Here's why I don't think Twitter is profitable or will be:

1) No ads. I don't see any now. "But, they can add advertisements later!" No they can't. Adding advertisements to Twitter will destroy their brand and everything that makes them "cool."

2) No clear picture on their profits and revenue. Profitable companies or companies with a solid revenue model have nothing to hide. There's no reason to hide your money situation if you're successful or have a successful strategy. Twitter doesn't. Their strategy relies on selling to the VC community, not selling to users.

3) Buying up competitors before you're posting profits means twitter's only asset (users) are hard to maintain control of.

Re: Twitter To Buy TweetDeck For $40 Million – $50 Million

#22

Post by jonursenbach »

truthtechnician wrote: post #21
jonursenbach wrote: post #9

Earlier quoted context omitted.

What makes you think that Twitter isn't profitable, or at least has some incoming cash flow that isn't pumped in by VC or the secondary market?

I'll bite. Here's why I don't think Twitter is profitable or will be: 1) No ads. I don't see any now. "But, they can add advertisements later!" No they can't. Adding advertisements to Twitter will destroy their brand and everything that makes them "cool." 2) No clear picture on their profits and revenue. Profitable companies or companies with a solid revenue model have nothing to hide. There's no reason to hide your…

Twitter already has ads thought, and has had them for a while now.

Promoted Tweets.

Re: Twitter To Buy TweetDeck For $40 Million – $50 Million

#23

Post by truthtechnician »

pclark wrote: post #7
jcampbell1 wrote: post #5

Earlier quoted context omitted.

...or not being in a market where no one knows how to make money. The best exits are for the companies that don't need to.

TweetDeck could make barrels of money if Twitter allowed them to run adverts. (of some capacity)

And running adverts wouldn't destroy a huge portion of the userbase?

Re: Twitter To Buy TweetDeck For $40 Million – $50 Million

#24

Post by xentronium »

truthtechnician wrote: post #21
jonursenbach wrote: post #9

Earlier quoted context omitted.

What makes you think that Twitter isn't profitable, or at least has some incoming cash flow that isn't pumped in by VC or the secondary market?

I'll bite. Here's why I don't think Twitter is profitable or will be: 1) No ads. I don't see any now. "But, they can add advertisements later!" No they can't. Adding advertisements to Twitter will destroy their brand and everything that makes them "cool." 2) No clear picture on their profits and revenue. Profitable companies or companies with a solid revenue model have nothing to hide. There's no reason to hide your…

1, 3) Fair points.

2) Promoted tweets, api firehose. Their tries at adding ads to twitter certainly sucked, though.

Re: Twitter To Buy TweetDeck For $40 Million – $50 Million

#28

Post by rorrr »

pclark wrote: post #10
timjahn wrote: post #6

A company that doesn't make money buys another company that doesn't make money. The Silicon Valley economy exists entirely on its own with no relation to the "real world".

Not only does Twitter make money, but TweetDeck raised it's first round of funding little over 2 years ago - it isn't ridiculous to spend that long building a product before monetization. No need to be so down on this.

Raising money is not making money. You give up a % of your company when you get funded.

Re: Twitter To Buy TweetDeck For $40 Million – $50 Million

#29

Post by ry0ohki »

dotBen wrote: post #3

Thoughts on whether Twitter will actually maintain Tweetdeck post-acquisition? For me, I have a feeling they will mothball it for three reasons: a) The aesthetic and visual approach of Tweetdeck doesn't fit in with the way Twitter wants its product used b) Twitter are looking to staff up a London office, it would make sense to use Tweetdeck (based in London) as that office (EDIT: the implication being that said staff…

TweetDeck might make sense as some sort of "Business or Pro" edition of Twitter

Re: Twitter To Buy TweetDeck For $40 Million – $50 Million

#30

Post by waterlesscloud »

truthtechnician wrote: post #21
jonursenbach wrote: post #9

Earlier quoted context omitted.

What makes you think that Twitter isn't profitable, or at least has some incoming cash flow that isn't pumped in by VC or the secondary market?

I'll bite. Here's why I don't think Twitter is profitable or will be: 1) No ads. I don't see any now. "But, they can add advertisements later!" No they can't. Adding advertisements to Twitter will destroy their brand and everything that makes them "cool." 2) No clear picture on their profits and revenue. Profitable companies or companies with a solid revenue model have nothing to hide. There's no reason to hide your…

There's that whole "metadata" part of a tweet that goes largely unused. It could carry an ad payload displayed on certain clients.

Perhaps on Tweetdeck, as a random example.

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