" ITREALMS: Twitter secures N13.6bn investment

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Wednesday, July 27, 2011

Twitter secures N13.6bn investment

Twitter, the microblogging internet company, is set to secure an extra $90m, about N13,7 billion investments from T Rowe Price.

The American mutual fund manager reportedly values the microblogging internet company at $8bn, N1.2 trillion, according to UK Telegraph.

The money from the American investor, the report stated which already owned a small stake in Twitter, is expected to form part of an $800m investment round being conducted by Twitter, according to Sky News.

The lion’s share of the new money is expected to come from Digital Sky Technologies (DST). The firm, founded by the legendary dotcom investor Yuri Milner, is thought to be investing around $400m.

JP Morgan’s Digital Growth Fund is also thought to be considering an investment. Other key new investors are expected to be Russian investing heavyweight DST Global, which has invested in Facebook, Zynga and Groupon.

If the figures are achieved, the fund-raising will imply that the company’s value has more than doubled since last December.

Twitter marked its fifth birthday earlier this month and has become one of the world’s most prominent dotcom businesses, with more than 200m users.

Twitter’s revenue growth has not grown at the same rate: the company is expected to generate just $150m in advertising revenue this year.

Twitter is currently working to build revenue, primarily through advertising. Investors are enticed by the popularity of its service, which sees more than 200 million messages sent a day.

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1 comment:

Amarant said...

That is a very smart move for Twitter, because studies are beginning to show that interest in social media is waning. Twitter needs a new source of income should microblogging become a thing of the past.

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