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Multimillion deals make Twitter profitable—report


Agence France-Presse
First Posted 16:34:00 12/22/2009

Filed Under: Technology (general), Online, Internet

WASHINGTON?Twitter has reached profitability after signing multi-million deals with Google and Microsoft to make the microblogging service searchable on the Internet, a magazine reported Monday.

Twitter had signed a $15-million data-mining deal with Google and a $10-million agreement with Microsoft, said BusinessWeek magazine, which was purchased in October by financial news agency Bloomberg.

"The deals were huge," Bloomberg BusinessWeek quoted an unidentified person "familiar with the company's finances" as saying. "With two scoops of the pen, a lot of revenue came in."

The magazine said the agreements to make Twitter messages known as "tweets" searchable by Google and Microsoft's new search engine Bing "carry sufficient value to help Twitter achieve a small profit for 2009."

It said Twitter also achieved profitability by renegotiating deals with telecommunications companies to bring down costs.

Twitter has been working on ways to make money from its globally popular service, and revenue producing ideas mentioned to date include selling premium accounts that businesses could use for marketing or image building.

The San Francisco-based startup has won millions of users since the service that allows people to pepper one another with 140-character-or-less messages launched in August 2006.



Copyright 2012 Agence France-Presse. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



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