Here’s an intriguing take on Twitter from Forrester Research analyst Josh Bernoff, who believes Twitter will become profitable or get acquired in 2010. (Source: AdAge)
“Twitter has been fiddling around and growing like mad but without a business model for years now. In 2010, growth is not sufficient. One of two things will happen. Either Twitter will have a business generating $100 million at an annualized rate by the end of 2010, or it’s going to get bought by the likes of Google, Facebook or Microsoft. I don’t believe it can continue as a huge force that has no visible means of support. Do you?”
It’s not like Bernoff is putting himself out of a limb by making such a broad prediction but I think the reality is Twitter’s future – at least as far as 2010 goes – is not a simple black and white proposition.
With oodles of venture capital in the bank (and more if needed), there’s no reason why Twitter has to become profitable in 2010. In fact, Twitter will be just fine if it continues to add more users, rolls out services that make the service more sticky/interesting, and starts to generate revenue from premium services.
A year from now, Twitter could have 75 million to 100 million users and, for the sake of argument, be making $20-million in revenue. Even if Twitter aggressively staffed up to 100 people, it would be probably be profitable and, at the same time, make itself even more of a takeover candidate.
This would fulfill Bernoff’s either/and predictions, which just goes to show how safe he’s playing it.
This website uses IntenseDebate comments, but they are not currently loaded because either your browser doesn't support JavaScript, or they didn't load fast enough.
Is 2010 Make or Break for Twitter?
Here’s an intriguing take on Twitter from Forrester Research analyst Josh Bernoff, who believes Twitter will become profitable or get acquired in 2010. (Source: AdAge)
“Twitter has been fiddling around and growing like mad but without a business model for years now. In 2010, growth is not sufficient. One of two things will happen. Either Twitter will have a business generating $100 million at an annualized rate by the end of 2010, or it’s going to get bought by the likes of Google, Facebook or Microsoft. I don’t believe it can continue as a huge force that has no visible means of support. Do you?”
It’s not like Bernoff is putting himself out of a limb by making such a broad prediction but I think the reality is Twitter’s future – at least as far as 2010 goes – is not a simple black and white proposition.
With oodles of venture capital in the bank (and more if needed), there’s no reason why Twitter has to become profitable in 2010. In fact, Twitter will be just fine if it continues to add more users, rolls out services that make the service more sticky/interesting, and starts to generate revenue from premium services.
A year from now, Twitter could have 75 million to 100 million users and, for the sake of argument, be making $20-million in revenue. Even if Twitter aggressively staffed up to 100 people, it would be probably be profitable and, at the same time, make itself even more of a takeover candidate.
This would fulfill Bernoff’s either/and predictions, which just goes to show how safe he’s playing it.