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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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Im confused.
By 67STANG on 9/25/2009 10:28:32 AM , Rating: 3
Sure, Twitter is popular (not sure why), but are they making any type of income? Do they even have a business plan?

They are talking IPO already, but who in their right mind would invest in a company that doesn't have any idea how to make money?

This has scary written all over it.

RE: Im confused.
By soydios on 9/25/2009 10:31:27 AM , Rating: 3
This has "bubble" written all over it.

RE: Im confused.
By Lord 666 on 9/25/2009 10:39:54 AM , Rating: 2
Actually, it has takeover written all over it. At Networkers this year, Cisco (and Comcast during a presentation) mentioned Twitter so many times, thought they owned them. Their execs are using it so much, their CTO (Warrior) has the second most connections in California.

This "application" could be useful to Cisco.

RE: Im confused.
By amanojaku on 9/25/2009 11:19:21 AM , Rating: 2
Why would anyone want to take over Twitter? It's just a CGI/PERL/ASP/(insert your technology of choice) application made into a giant website. Slap a randmoly generated question onto the top of the page and you're all set. You don't need Twitter for that.

RE: Im confused.
By Lord 666 on 9/25/2009 11:28:33 AM , Rating: 2
44,500,000 different reasons...

RE: Im confused.
By Myg on 9/27/2009 2:53:12 PM , Rating: 2
If they wanted to make money on a fad they should of invested in something real; like sprokets: I hear those things are changing the world!


RE: Im confused.
By Shlong on 9/26/2009 4:13:30 PM , Rating: 2
Start putting content relevant ads (tweet about nintendo wii and you see a wii ad, etc.) and they should start turning a profit like facebook.

this article fails
By kattanna on 9/25/2009 12:13:01 PM , Rating: 3
because it took more then 140 characters to talk about it

RE: this article fails
By TSS on 9/25/2009 1:54:20 PM , Rating: 2
nope, there's nothing wrong with the article. save 1 thing:

The newly raised funds value Twitter at 1 billion theoretical dollars.

as it stands, sneezing panda is still bigger.

RE: this article fails
By amanojaku on 9/25/2009 2:43:45 PM , Rating: 2
USB 3.0 has them all beat. It's worth gazillions!!!

"Can anyone tell me what MobileMe is supposed to do?... So why the f*** doesn't it do that?" -- Steve Jobs
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