Twitter snags 'significant' funding, looks to expand reach

Twitter confirmed today that it has raised a "significant round of funding" that executives hope to use to expand the site's reach.

The company noted in a blog post this morning that the funding was led by the venture firm DST Global, with several previous Twitter investors participating as well. While Twitter did not specify how much funding was brought in, the Wall Street Journal's All Things Digital reported recently that Twitter was working to sew up an $800 million funding deal.

The Journal also reported that $400 million of that funding will be used to cash out current investors and employees.

Twitter declined to comment on the funding amount or what exactly it will be used for.

"We will use these resources to aggressively innovate, hire more great people and invest in international expansion," the microblogging company said in its blog post.

Dan Olds, an analyst with The Gabriel Consulting Group, noted that this is an important event for Twitter. "If the $800 million figure is correct, it values the company at around $8 billion," said Olds. "That's more than twice the valuation they had less than a year ago."

He also has some ideas of how Twitter should use such a huge influx of cash. "The first thing that comes to mind is that this gives them a mechanism to allow their employees to sell some of their stock and realize some of the wealth they've helped the company build," he said. "This is key in helping them retain key people and simply the right thing to do."

Olds also noted that Twitter refers to extending its reach, which could mean anything from expanding its IT infrastructure to strategic acquisitions.

"The one thing that this definitely does is ratchet up the pressure on management to come up with a business model that can throw off enough profits to support that $8 billion value on the company," he added "Right now, it's estimated that their revenue is around $200 million, which isn't nearly enough to justify an $8 billion value. They haven't yet figured out how to best convert their massive user base into a marketable commodity."

Twitter, however, used today's blog post to point out its growth momentum.

"Twitter continues to grow around the globe at a record pace," it noted in the post. "Just a year ago, we delivered 65 million tweets a day. Today, we generate over 200 million tweets per day. One year ago, there were approximately 150,000 registered Twitter apps. Now, there are more than one million that connect to Twitter."

Twitter also noted that its team of employees has grown from 250 people to more than 600 in the past year.

Join the PC World newsletter!

Error: Please check your email address.

Tags Internet-based applications and servicestwittersocial mediainternet

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Sharon Gaudin

Computerworld (US)
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?