Twitter Co-Founder Biz Stone is Lying to Jack Up His Company’s Value
Twitter Co-founder Biz Stone was lying when he publicly said, “We have so many other things before we even think about that [initial public offering or additional funding] … We are not even discussing it internally. It’s too far off.”
That, my friends, is a master of hype. Stone is a man who understands why elite fashion designers and nightclubs can charge stratospheric prices for an experience: exclusivity.
Not only is Twitter one of the hottest Web 2.0 companies, now they are brazenly telling their groupies: “No thanks. You can’t have none of this.” Like little children, all they’ll want is more — and they’ll be willing to pay through the nose to brag if they can get into a M&A deal. (See “A Sneak Peek at the 5 Leaders of the Coming Social IPO Bubble“)
Why would Google (NASDAQ:GOOG), Facebook, or JP Morgan (NYSE:JPM) go around starting rumors about investments or buyouts. They wouldn’t. More logically, Twitter is masterfully orchestrating a lovely game of hype chess where the endgame involves them monetizing peak animal spirits. “Blue Horseshoe loves Anacott Steel.”
If Biz Stone or anyone else at Twitter lived through the dotcom bubble, they know exactly how the window of opportunity works. If they are sitting around resting on questionable statistics and a slow-to-develop business model, I recommend they have some beers with the Friendster guys.