Twitter lined up a substantial amount of cash recently -- around $100 million -- and an estimate that the company itself is worth ten times that. This is despite the fact that Twitter, as a standalone company, has yet to generate a steady stream of revenue since it launched. With anywhere from 45 to 55 million users and more on their way, keeping operations alive is going to be difficult. As they raise funds, they'll need to justify their worth.
Is Twitter truly worth $1 billion? If so, who would actually put down a serious bid? Current rumors are that Google, Yahoo, AOL and even Cisco are all potential buyers, but all of those companies will have to evaluate whether or not the service can be used to make a buck. To date, Twitter hasn't proved they can.