The valuation of social media network firms: Twitter implementation

One of the main subjects of financial management is "firm valuation". Valuation is not only related to public offering, mergers and acquisitions; it also plays an important role in making many economic and commercial decisions. The most important problem in determinig the value of a firm is finding its "intrinsic value". The intrinsic value of the firm; is not just a value determined by the market through supply and demand, but also is a value that should take into account the value drivers of the firm. Developments in the communication and information sector have led to many new concepts, phenomenon and activities. One of these new fields of activity is "social media networks". This study examines the valuation of social media network firms, an area that is limited in literature, and tries to put forward a conceptual framework. After examinig in detail the traditional (Discounted Cash Flow, Iterated Discounted Cash Flow, Trading Multiples) and other (Historic Multiples, Peter Lynch Method, PEG Model, User Based Valuation, Merger and Acquisition Multiple, Regression Method and Reverse Engineering) methods used in firm valuation, the firm value of Twitter, which is social media platform called microblog, has been calculated using both traditional and other valuation methods. The study resulted in a general evaluation of the subject examined