Twitter now getting twice the funding first reported

Twitter has become as important to the lives of many people as Facebook and MySpace. The social networking sites draw huge audiences from all walks of life as people use the services to keep in touch, and at times to make money.

Earlier this month, Twitter was reported to be in the final stages of securing additional funding to the tune of $50 million. The newly raised funds value Twitter at $1 billion. Reuters is reporting that Twitter is now doubling the amount of financing that it was expected to raise to $100 million according to sources.

Reuters reports that investors in this round of financing include Spark Capital and Institutional Venture Partners as well as T. Rowe Price. T. Rowe Price is a mutual fund known for investing in public companies more than start-ups. The participation of T. Rowe Price in the funding has raised some speculation that Twitter may be preparing for an IPO.

Analyst Colin Gillis from Brigantine Advisors said, "You only see this type of behavior typically when a fund is seeking to get a position before an IPO."

Twitter is soaring in popularity with 44.5 million visitors to the site in June, a 15 times increase compared to the year before. Twitter currently does little to monetize its traffic, but is set to sell ads and premium features in the future. Other speculation is that Twitter could be gobbled up by a larger internet firm like Google, Yahoo, or AOL.

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