Whatever it is that makes investors think Twitter is worth $1 billion, it isn’t the ability to make money now or in the near future. But, as the New York Post points out, that doesn’t mean Twitter can’t make money for other companies.
One sports entrepreneur, Chris Russo, reeled in a chunk of McDonald’s marketing millions with Twitter. In 2006 he founded Fantasy Sports Ventures, which is now helping the fast food chain reach fantasy football players with a branded product that aggregates “tweets” about the subject
Russo’s revenue, thanks to the burger giant, is expected to double this year to $10 million.
Countless other small businesses have sprung up to sell everything from Twitter-related tees to tools that help businesses manage their accounts.
Twitter’s investors say this arrangement is just fine with them:
“We have far more cash than we need, so I’m not in any hurry,” Todd Chaffee, a partner at Institutional Venture Partners, told Wired.com.
IVP, an early backer of Yahoo!, is among a half-dozen venture funds said to have sunk a total of $55 million into Twitter, convinced it will eventually wrangle a Google or a Facebook into a deal.