Twitter founder Jack Dorsey: We'd consider selling
Filed under: Company News, Technology, People, Investing, Media
Twitter would have to consider selling itself, if it is best for the company, co-founder and Chairman Jack Dorsey told DailyFinance."We have to put the product and the service that we're building first," Dorsey said in an exclusive interview with DailyFinance today after he spoke at New York University. "If it's better in the hands of another organization that can add support, then, yes, I mean, that's something I'd consider."
He'd rather not sell the fast-growing micro-blogging service, he said. Although costs are increasing as Twitter users multiply, Dorsey feels the San Francisco-based company has enough money to "be patient" about having to create revenue.
Twitter's board, which has six members and meets every six weeks, isn't looking for a certain amount of money in order to sell to the highest bidder or best workplace fit, Dorsey said. Google (GOOG), Apple (AAPL) and Microsoft (MSFT) have been the rumored potential buyers in recent months.
"We feel that we can build something that is sustainable independently and that is the fastest and best way that we can move," he told DailyFinance after speaking with other panelists at NYU about the future of media as part of the Internet Week New York conference. Other speakers on the panel included Craig Newmark, founder of Craigslist.com and Alan Murray, deputy managing editor of the Wall Street Journal. Murry told the panel that the Journal likes the traffic Twitter and others provide, which DailyFinance's Jeff Bercovici wrote about here.
The micro-blogging service is a labor of love for Dorsey and his co-founders Biz Stone and Evan Williams, who is also the company's chief executive. That said, money is a need and an issue as the company serves more users.
"We raised enough money so that we could be patient," Dorsey said, and to get to the point where the company makes enough money to sustain its own growth.
In the past week, Twitter CEO Williams told The Wall Street Journal's Walt Mossberg that he'll still be running the company in five years and told CNBC that if the Twitter founders wanted to sell, they'd have sold by now.
Since Twitter is bringing in little revenue, whether the company has enough money to sustain its rapid growth is "an open question," Dorsey said. "We're not really sure. The usage is really taking a lot of resources right now and that doesn't seem to be stopping."
In the meantime, Dorsey and the Twitter management team is micro-focused on the "atomic unit" that is the 140 characters that make up a Tweet. Whether the company sells or not isn't the primary focus for Twitter.
"We're just open to whatever is best for the product and service," Dorsey said in the interview. "Ideally, we'd like to sustain it through revenue. But we might need to take more money."
Whether Twitter ever needs to put up a "for sale" sign to raise more money, Dorsey simply said, "I hope not."
Anthony Massucci is a senior writer for DailyFinance. You may follow him on Twitter at hianthony.
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Reader Comments (Page 1 of 2)
6-03-2009 @ 9:41PM
lisa said...
This guy should be beat up for creating Twitter!
Reply
6-04-2009 @ 2:07PM
Richard Sakai said...
You obviously don't see the appeal in Twitter, Twitter has more useful applications than as a platform for random musings.
6-03-2009 @ 10:24PM
val said...
i love twitter its so cool. and fun especially when you find and follow your friends.
Reply
6-03-2009 @ 11:20PM
bailoutsos said...
""be patient" about having to create revenue." --- Typical dot com company that blew up. Ain't makin' money, but invest in us. People never learn.
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6-04-2009 @ 2:07AM
j2180 said...
tweeter is soooo lame.
Reply
6-04-2009 @ 1:46AM
Michael G. said...
I do not understand why anyone would sign up for this one. People these days have no life, so they have to live thru others. Go out and do something people!
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6-04-2009 @ 5:39AM
dxxy4u said...
This was the plan from the beginning. Get something out there that the BIG fish might want to acquire. Sell it for a killing, and live happily ever after.
Reply
6-04-2009 @ 5:45AM
dxxy4u said...
Remember this is a "Service" not a tangible "Product". Transition can be done in 15 minutes. Just sign a bunch of papers, get the Money, and Book (haul ass). Deals done.
Reply
6-04-2009 @ 7:06AM
DoubleEnglish said...
Here's easy way to get users to pay for Twit without introducing any ads on the service. Charge a few bucks a month for 'priority service', meaning you get your twits instantly, as is now. Free service has a 10 minute delay to get your twits. Simple plan. Twit addicts that want real time twit will pay. Others can still use it for FREE.
ps. Twit CEO, please send me the check for this great idea.
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6-04-2009 @ 12:13PM
Norm said...
Great story. Not surprised about his thinking.
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6-04-2009 @ 12:17PM
johnny5 said...
If i founded twitter i would shoot myself..
Electronic Cigarette
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6-04-2009 @ 12:27PM
Iridium said...
Secrets of making money in the new world we live in:
1) Create something millions of people can use for free that can never really make money and actually loses millions
2) Sell it to a large multinational for hundreds of millions becuase they are afraid one of the other companies might buy it
3) You and your frat buddies can live large for the rest of your life
Reply
6-04-2009 @ 2:15PM
valeriob said...
just put twitter in a brown paper bag, light it on fire, and leave it on your neighbor's doorstep.
It just a place for celebrities to rant and rave without unwelcome stalkers. They should charge $1,000/month for twitter accounts, and free for those only following.
Reply
6-04-2009 @ 12:57PM
BenLewis said...
It's insane how much money the creators of Twitter, YouTube, MySpace, and Facebook have made just based on their ideas. And then they double their money by selling out the even bigger corps who will just run the show any way the want to. It would be nice to see a social networking site not sell out.
http://www.talenttrove.com
Reply
6-04-2009 @ 2:29PM
Armand said...
Twitter itself might be a simple useless thing, but in my case as a webdesigner I'm able to connect to more people about design itself. Facebook is for your friends, LinkedIn is for your professional career and Twitter is for everybody (freelance designer, designer company ect.) that have something in common and shares interesting news directly to you. But yhea as always you will find allot of useless data. I just use as a tool more than tweet with friends.
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6-04-2009 @ 2:41PM
Jahangir said...
I don't want to see twitter is some other company's hand. I like to see what new features the existing owners can add into this application to make it more interesting.
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6-04-2009 @ 4:29PM
mikey said...
i agree ,,he should be beat up..i would nt use it because of the retarded name! 'twits' use twitter..so stupid..how about useing your brain instead!?
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6-04-2009 @ 5:40PM
stephen J said...
Twitter should sell ASAP - The service has " jumped the shark" - It will be considered quaint in a matter of months.
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6-04-2009 @ 6:04PM
Jason Weider said...
LOL, of course he would. Everything is for sale if the price is right! LOL
RT
Reply
6-11-2009 @ 2:53AM
virginia tax preparation said...
Ya if your are selling your products economically i will buy..If its free:lol
Reply