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Twitter said to be profitable after making search deals

Microblogging service provider Twitter Inc. will turn a profit thanks to $25 million from Internet search deals with Google Inc. and Microsoft Corp., Bloomberg News reports, citing people familiar with the matter.

An agreement that makes Twitter's free text messages, or "tweets," searchable on Google's site will generate about $15 million, while a similar deal with Microsoft's Bing search engine will earn about $10 million, the sources said.

The multiyear agreements will allow Twitter to make a small profit in 2009, said the people, who estimate the three-year-old San Francisco company's operating costs are $20 million to $25 million a year.

Company co-founder Biz Stone wouldn't comment on finances, saying only that Twitter is proud of the work it accomplished in 2009. Google and Microsoft representatives also declined to comment.

Twitter got help reaching profitability by cutting expenses, the sources told Bloomberg. The popularity of its service has enabled the company to strike cheaper deals with telecommunications companies it pays to distribute billions of tweets over wireless networks.

Источник: Total Telecom

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