Twitter is now the center of attention in the business market as discussions with at least some potential suitors have produced an estimated valuation of $8 billion to $10 billion. In December 2010 Twitter was valued at $3.7 billion as well on the receiving of $200 million in new venture capital. Rumours also say that there has been a certain interest from Facebook and Google in acquiring Twitter in the last period, but no practical step has been taken yet, and no official comment has been made.

Ethan Kurzweil of venture capital firm Bessemer Venture Partners considers that the sum is artificially inflated as social services providers are valuable for their marketing potential, i.e. their database of user info. Twitter has great potential for development, last year having introduced advertising services like Promoted Trends, Promoted Tweets and Promoted Accounts are coining in. The company is investing in its workforce, hiring 250 engineers and appointing Mr. Costolo, former Google executive, as CEO.

In September 2010, Twitter launched its new website, demonstrating a keen interest in delivering proper services as requested by users. A more airy aspect of the interface, support for photos and videos and a 2-column layout are the main ingredients of Twitter’s make over. Noteworthy is the use of third party tools emphasizing Twitter’s commitment to becoming more relevant to its existing user base.

Not only Twitter benefitted from rich valuations, as competitors also increased their potential. Facebook, for example, managed to raise $1.5 billion valuing the company at $50 billion, five times more than in 2009. Business specialists might speculate over these numbers, but one thing is certain: such high valuations will bring enormous revenues for social media service provider from advertising from now on.