Another day, another bit of news about sky high values for a tech firm.

The latest is that Twitter may be valued as high as $10 billion, based on the micro-blogging service’s recent low level sale discussions with both Facebook and Google executives.

Let that news sink in.

As Internet valuations climb and bankers and would-be buyers circle Silicon Valley in an increasingly frothy tech market, many eyes are on one particularly desirable, if still enigmatic, target: Twitter. Discussions with at least some potential suitors have produced an estimated valuation of $8 billion to $10 billion.

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.

This for a company that, people familiar with the matter said, had 2010 revenue of $45 million—but lost money as it spent on hiring and data centers—and estimates its revenue this year at between $100 million and $110 million.

“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.”

A Twitter spokesman declined to comment on its finances, valuations and interest by other companies. Google and Facebook also declined to comment.

Twitter, which started selling ads last spring against its business of allowing users to send messages of no more than 140 characters, is just one of many tech targets being batted about as valuations climb. In December, when it got $200 million in new venture capital, Twitter was valued at $3.7 billion.

But since then Facebook raised $1.5 billion in a financing that valued the social network at $50 billion, up from $10 billion in mid 2009. Online-coupon provider Groupon Inc. rebuffed a $6 billion takeover offer from Google and set plans for a 2011 public offering—a prospect that had bankers rushing to Groupon’s Chicago headquarters in recent weeks to make pitches. And just this week, AOL Inc. agreed to pay $315 million to buy the Huffington Post—about 10 times the news and commentary website’s 2010 revenue.

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