Twitter Could Be Worth $8B-$10B

Twitter, the not-yet-public purveyor of the pithy message and Internet posting site, has reportedly held talks with potential suitors and the company's estimated valuation is now believed to be $8 billion and $10 billion. Along with Facebook, Groupon and LinkedIn, Twitter is among the richly valued tech firms that venture capitalists and investment bankers are clamoring to see go public sooner rather than later. Facebook and Google GOOG executives have held informal talks with Twitter, but those discussions have not progressed, the Wall Street Journal reported, citing people with knowledge of the matter. The $8 billion to $10 billion valuation seems excessive for a company that is believed to have posted 2010 revenue of $45 million. Some sources believe Twitter will show 2011 revenue of $100 million to $110 million, the Journal noted. Twitter has previously been valued at $3.7 billion, less than half the low end of the newly reported valuation. Officials from Twitter, Facebook and Google all declined to comment on the rumors. Facebook and Google have both previously expressed interest in acquiring Twitter, according to the Journal. Founded in 2006, Twitter just started selling ads in 2010 to bolster revenue, but, at least on the service, it appears the company isn't fully monetizing its reported 200 million users. LinkedIn, the professional networking site, filed plans for an IPO in January and the speculation is the company will be valued at $2 billion.