$7.7bn is a very large number for a very small amount of characters, but do the maths and that’s what the world’s favourite microblogging engine should be worth going by the auction of shares on the secondary market. Has its value really doubled since the pre-Christmas funding round at $34.50 a share?
A fresh valuation at an auction of Twitter shares by Sharespost places the microblogging company at $7.7bn.
Investors have agreed to pay $34.50 a share in the $1.2m auction that Sharepost said was oversubscribed. It said the auction involved 35,000 shares of Twitter’s Series B preferred stock.
The recently held auction suggests that investors value the company at more than twice the valuation it got in a December funding round.
In December last year, Twitter raised $200m in financing in a deal that valued it at $3.7bn.
Earlier rumours of the company’s low level talks with Google and Facebook shot up the micro-blogging site’s value to as high as $10bn.
On 28 February, a new JPMorgan Chase & Co technology fund was reported to be in talks to buy a stake in microblogging site Twitter.
Twitter was created in 2006, but it introduced advertising into its service only last year.