Leading financial news magazine, Business Week, has reported that micro blogging giant Twitter will have a profitable year after the company signed two separate deals with Google Inc and Microsoft Corp which will allow Twitter tweets to be searched on their respective search engines.
The magazine, which was recently bought by financial news agency Bloomberg, reported that Twitter raked in around $25 million from the deals with Microsoft Bing paying $10 million and Google Inc coughing up $15 million.
According to the Bloomberg Business Week report, the deals with Google and Microsoft Bing “carry sufficient value to help Twitter achieve a small profit for 2009."
Business Week also reported that the website has made some profit by renegotiating deals with several telecom companies - including the likes of O2 and Orange - to bring down costs.
Twitter, which is based in San Francisco, allows its members to post 140 characters long SMS like messages on their profiles and enjoys over 55 million monthly visits.
Recently, the company has been developing plans to start making profit from the immense popularity which is enjoyed by Twitter by rolling out premium plans for businesses, allowing them to use Twitter’s platform to market and promote their products on the social networking website.
Twitter has finally managed to get a few million dollars worth of revenues. Will that be enough to cover the ever growing costs of the microblogging phenomenon? Not sure. One thing that the Businessweek report did not mention is whether this is a recurring revenue or a one off payment.