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Is Twitter Worth More Than We Think?

Posted By Barry Ritholtz On March 11, 2011 @ 11:30 am In M&A,Technology | Comments Disabled

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CNBC’s John Melloy [2] mentions what may be the best analysis I’ve seen on the “Charlie Sheen effect.”

It comes from Lou Kerner, a keen eyed analyst at Wedbush. (See chart above) Kerner notes that Sheen may be Twitter’s “Lazy Sunday [3]” moment:

Content Creators #Winning

In December, 2005 a Saturday Night Live skit called Lazy Sunday was uploaded to Youtube. One week later, Lazy Sunday surpassed 2 million views and by the time NBC had the video removed, the Lazy Sunday clip had generated 7 million video views. Lazy Sunday launched YouTube into the spotlight and ten months later, Google purchased YouTube for $1.65 Billion.

Twitter had its Lazy Sunday moment on February 28th when Charlie Sheen created his @charliesheen Twitter account. In just over 25 hours, Sheen amassed over 1 million followers, making the @charliesheen account the fastest to ever reach 1 million followers and making Twitter headline news.

I couldn’t begin to pit a dollar value on Twitter using traditional metrics of revenue and profits; but between Egypt and Sheen, their “buzz factor” went up immeasurably.  That makes a potential bidder more probable.

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See also: Charlie Sheen sues Warner Bros., Chuck Lorre [4]


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2011/03/is-twitter-worth-more-than-we-think/

URLs in this post:

[1] Image: http://www.ritholtz.com/blog/wp-content/uploads/2011/03/Goog-Tube-SheenTwiiter.png

[2] John Melloy: http://www.cnbc.com/id/42010882

[3] Lazy Sunday: http://www.hulu.com/watch/1397/saturday-night-live-snl-digital-short-lazy-sunday

[4] Charlie Sheen sues Warner Bros., Chuck Lorre: http://latimesblogs.latimes.com/entertainmentnewsbuzz/2011/03/charlie-sheen-files-100-million-suit-against-warner-bros-and-chuck-lorre-.html

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