Spinning off Twitter

There have been a multitude of rumors concerning the possible sale of Twitter to a variety of suitors. The underlying problem has been the method of valuing the struggling tech company. This article from Bloomberg highlights one of the many complications that exist with valuing the company.

What do you think? Do you think Twitter is a solid acquisition? How would you value the company?

But that’s merely the networked and mobile technology. If you want to know how valuable the company is, you must ignore the utility of the social network and delve into the revenue numbers behind the platform. That exercise helps to explain why Twitter, which has put itself up for sale, hasn’t found a buyer yet.

Lots of theories have been floated about this issue, but the answer is simple: Twitter doesn’t have enough users, and each of the users it does have generate relatively little revenue compared with other social networks...