According to news sources, Twitter’s Search Deal with Google and Microsoft’s Bing has brought profits to Twitter in the year 2009.This has raised a revenue of $ 100 million in venture capital and has a paper valuation floating around one billion dollars.
Twitter is yet to announce its long term revenue strategy; it is the best Christmas miracle that could ever happen to Twitter. Twitter also managed to cut off on some of the high expenses related with text messaging functionality. Twitter had been trying to reduce these high expenses by hiring expensive mobile development dudes and restricting international SMS codes. By the end of year, Twitter may become one of the highest profitable businesses, but this may not necessarily mean that it is going to be a profitable year as Twitters other expenses are yet to be curbed.
Today twitter dominates the bargaining power with telecom companies and has renegotiated a number of deals with carriers that today twitter pays less for the same service. Now that costs are coming down people form a major line item in the company, they have a new office, and an ever expending payroll. The company is expanding and developing several new features. Today Twitter is getting $ 25 million out of search deals pointing towards the fact that the company would expand into long term revenue strategy after an in depth analysis.