Let's Party Like it's 1999

I still don't understand how or why Twitter even exists, so I guess it stands to reason that I wouldn't understand how they're ever going to monetize their service to any meaningful degree.  I'm heartened to see I'm not alone in this.

Executives at both Facebook Inc. and Google Inc., among other companies, have held low-level talks with those at Twitter Inc. in recent months to explore the prospect of an acquisition of the messaging service, according to people familiar with the matter. The talks have so far gone nowhere, these people say.

But what's remarkable is the money that people familiar with the matter say frames the discussions with at least some potential suitors: an estimated valuation in the neighborhood of $8 billion to $10 billion.
then, later:
"Are these prices justifiable based on financial multiples? No," said Ethan Kurzweil of venture capital firm Bessemer Venture Partners. But these start-ups are building social services and have lots of data about their users and "the market is valuing that mightily right now."
Such a familiar investment thesis.