29 September 2009 | by B&T Writers  

Twitter will find it tough to justify its recent $1billion valuation and hard to make a lot of money, according to MySpace co-founder Brett Brewer.Brewer, founder of Intermix Media, the company which created MySpace and was acquired by News Corporation in 2005, said Twitter will now be strongly focused on how to monetise the microblogging service, how to integrate ads, and how to cope with Facebook. Last week Twitter closed a round of financing of around $100 million that valued the social media network at $1billion.

 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.”