The WSJ blog has just gone live with the news that micro blogging powerhouse Twitter is close to securing a deal for a further $100 million of funding. It claims that the investors group includes ‘mutual fund giant T. Rowe Price and private-equity firm Insight Venture Partners.’
There are two interesting parts to this story
1 What does that mean Twitter is worth now?
According to WSJ that makes Twitter with its 20 million or so users, worth a nice round $1 billion. Not bad for a company that hasn’t yet made any money or indeed said how it intends to make money. For reference sake Facebook, which has around 300 million users, is apparently worth around $15 billion
2 Why does it need more money?
Well given its surge in traffic over the last year Twitter is obviously using a lot of expensive bandwidth. I guess that the next round of finance too will come with strings attached which will see Twitter’s execs having to implement monetisation plans. So far the team has mumbled about plans for advertising and premium services for busineses. Now it appears to be cards on the table time. I bet we see some hot shot sales execs in that team very soon.