Twitter will make a small profit in 2009 after signing two major search deals with Google and Microsoft, a source close to the company has said.
The two deals will see Twitter become searchable with the Google agreement worth US $15 million and the tie-up with Microsoft’s Bing search engine valued at $10 million.
“The deals were huge,” the source told Business Week. “With two scoops of the pen a lot of revenue came in.”
According to the source, Twitter has also renegotiated its arrangements with telecommunication companies in an effort to reduce costs. The company has been looking for a way to turn a profit since its launch in 2006, floating ideas such as premium business accounts for companies to use for marketing.
A number of wildly popular social networking sites including Facebook, have struggled to find a route to profitability despite frequently bloated company valuations.
In September 2009, Twitter raised $100 million in funding achieving a valuation of $1 billion in the process.