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Should Twitter Turn the Revenue On?

Published by on Sep 11th, 2009, No Comments

It was long back when Google denied Yahoo’s financing in its pre-revenue stages, but taking the risk paid off and Google is, what it is today.

twitter

Twitter, today, faces the same dilemma with suitors building up the pressure with every passing day, but investors are aware of this situation (although they do not discuss it openly). The big decision, however, needs to be taken and is if the company should turn the revenue on or ignore the takeover bids and take a risk just like Google.

Given the fact that Twitter has a high potential for the future, taking such a decision is a hard thing to do in the jittery world of the Internet. But reporting no revenue is also a problem, because experts cannot exactly estimate — which means that Twitter could say “bye bye” to any takeovers. Big public houses need a valuation spreadsheet to go ahead with the acquisitions. However, once the revenue is on, the valuation of a company like Twitter can also go down since a long-term growth rate is also furnished and that can never be relied upon — no matter who made the evaluation.

Twitter is at a stage where it has to make a brave decision and this decision could be the turning point for the brand in all senses.

What would you do, if you’d own Twitter?

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