He said: “Assuming that Facebook doesn’t squash Twitter, for want of a better term, I honestly think Twitter is going to have a hard time making a lot of money, certainly from advertising, at least to justify a billion dollar valuation. Now can they come up with other angles were people can pay money? Possibly, but it’ll be tough to justify that valuation.
“Clearly they are in a super-exciting place, they are a market leader, though it is a little bit of a niche. Honestly, if I was Twitter I’d be pretty concerned about Facebook and the products that Facebook is already launching and is going to launch that are going to make it even more Twitter like. If you could parachute into a Twitter board meeting I have a feeling their main concern would be Facebook.”