Twitter is ending 2009 on a high note. The microblogging site has reached profitability after inking $25 million of deals that build its subject matter searchable by Google and Microsoft, Bloomberg BusinessWeek has learned.

In October, Twitter said it had struck multiyear arrangements that prepare users’ short blog postings available on Google.com and on Bing, which is run by Microsoft. Those agreements carry sufficient value to help Twitter achieve a small profit for 2009, say two society familiar with the company’s finances, who asked to remain anonymous considering Twitter’s books are not a matter of public record.

Like many social media startups, three-year-old Twitter focused early on adding subscribers rather than generating revenue. That’s left many analysts and investors wondering how and whether the company — often cited as a candidate for an initial public offering or acquisition — would prepare money. Twitter co-founder Biz Stone declined to comment on the company’s finances, but wrote in an e-mail

that the company is proud of the work it accomplished in 2009. “We’re thrilled about the partnerships we’ve formed that year and we’re looking forward to opening Twitter even more in the future,” Stone wrote.

In exchange for making short blogs, known as tweets, searchable on Google, Twitter will receive about $15 million, the two citizens say, adding that the Microsoft partnership is worth about $10 million. “The deals were huge,” says one. “With two scoops of the pen, a lot of revenue came in.”

Telecom Expenses Slashed, Too

Representatives of Microsoft and Google declined to comment. When the arrangements were announced, none of the companies involved disclosed their value. Tech blogs, including AllThingsDigital, had said only that the deals were worth several million dollars apiece.

Twitter additionally achieved profitability by reducing expenses, the society say. The company used to pay a lot of money to telecommunications companies for…

Original post by dhiram