To all the nay-sayers out there who said that twitter would never make a profit and that there was in fact no way that it could, you were completely wrong and the news of twitter making profit is everywhere:
Twitter is ending 2009 on a high note. The microblogging site has reached profitability after inking $25 million of deals that make its content searchable by Google (GOOG) and Microsoft (MSFT), Bloomberg BusinessWeek has learned.
No less newsworthy is the fact that both Google and Microsoft have announced Twitter search deals on the same day. With the rash of real-time search startups over the past two years and the heavy-hitters’ focus on real-time search integration over the past several months, the terms of this particular game become increasingly clear. The search market money remains in advertising, and who controls search by serving the best, most relevant results, will also control search revenue.
–Google to Index Twitter & Enter Real-Time Search Market: Implications Abound for Startups & Users
Business Week’s Ante also argues that Twitter was able to reduce operating expenses by renegotiating its deals with the telecom carriers that support the service’s text message system. Until this year, the cost of supporting the SMS system represented Twitter’s largest expense, though according to one source quoted by Ante, “now people are the biggest line item.”
Remember there’s always a way to monetize. Always. Especially if you’re talking about making money on information.
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