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 Good Gear Guide 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

Cool Tech

Crucial® BX200 SATA 2.5” 7mm (with 9.5mm adapter) Internal Solid State Drive

Learn more >

Lexar® Professional 1000x microSDHC™/microSDXC™ UHS-II cards

Learn more >

D-Link TAIPAN AC3200 Ultra Wi-Fi Modem Router (DSL-4320L)

Learn more >

ASUS ROG Swift PG279Q – Reign beyond virtual world

Learn more >

D-Link PowerLine AV2 2000 Gigabit Network Kit

Learn more >

Gadgets & Things

Lexar® Professional 1000x microSDHC™/microSDXC™ UHS-II cards

Learn more >

Lexar Professional 2000x SDHC™/SDXC™ UHS-II cards

Learn more >


Learn more >

Family Friendly

Lexar® Professional 1000x microSDHC™/microSDXC™ UHS-II cards

Learn more >

ASUS VivoPC VM62 - Incredibly Powerful, Unbelievably Small

Learn more >

Lexar Professional 2000x SDHC™/SDXC™ UHS-II cards

Learn more >

Stocking Stuffer

Lexar® Professional 1000x microSDHC™/microSDXC™ UHS-II cards

Learn more >

Lexar Professional 2000x SDHC™/SDXC™ UHS-II cards

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Best Deals on Good Gear Guide

Latest News Articles


GGG Evaluation Team

Kathy Cassidy


First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni


For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell


The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi


The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott


My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.


Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?