No IPO Soon: Twitter Raises Another $200 million

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SAN FRANCISCO - Don't expect Twitter to be tweeting about an initial public offering any time soon. The popular online communications service has raised another $200 million so it can keep growing without Wall Street's help.

Kleiner Perkins Caufield & Byers, one of Silicon Valley's best-known venture capital firms, is leading the investment announced Wednesday. Twitter also added two successful entrepreneurs, Mike McCue and David Rosenblatt, to its board of directors.

The funding was first reported by the technology blog, All Things Digital.

Twitter's association with Kleiner Perkins is likely to add to the intrigue about the moneymaking potential of a service that each day blasts out more than 65 million short messages, or "tweets," limited to 140 characters.

Kleiner Perkins' past Internet bets include investments in online search leader Google Inc., now worth about $190 billion, and leading Web merchant Amazon.com Inc., now worth about $80 billion.

The venture capital firm obviously thinks highly of Twitter, which started in 2007. The $200 million investment values Twitter at $3.7 billion, up from $1 billion 15 months ago when the company last raised money from ventures capitalist. Some of Twitter's previous financial backers upped their ante by joining Kleiner Perkins in the latest round.

Twitter has now raised about $360 million since its 2007 inception.

With so much cash being supplied by investors, Twitter's management has been able to focus on hiring more workers and adding more features instead of worrying about how to make money. The company, based in San Francisco, now employs about 350 people, more than tripling its payroll since the beginning of the year.

Most of Twitter's revenue so far has flowed from deals that have given Google, Microsoft Corp.'s Bing and other Internet services better access to its messaging stream. Over the past eight months, Twitter has gradually allowed ads to appear amid its service's chatter.

Twitter hasn't set a timetable for pursuing an IPO that would allow its current backers to cash out of their investments and give others a chance to buy the company's stock. Its executives, though, have repeatedly said they're in no hurry to take the company public.

Selling to a larger company remains a possibility, too.

The newest directors on Twitter's nine-member board both have experience with the sell option.

McCue sold TellMe, a company specializing in voice recognition software, to Microsoft for $800 million in 2007. He is now running another Kleiner Perkins-backed startup, Flipboard, which transforms links posted on Twitter and Facebook into a magazine format for the iPad. Apple Inc., the maker of the computer tablet, recently anointed Flipboard as its top iPad app of the year.

Rosenblatt was CEO of the online ad service DoubleClick Inc. when it was sold to Google for $3.2 billion in 2008. Twitter's current CEO, Dick Costolo, and previous CEO, co-founder Evan Williams, also previously sold startups to Google.

In a Wednesday tweet, Costolo said the new funding will "help grow Twitter to infinity and beyond."


Copyright 2010 The Associated Press.


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Filter by:
americandoo

"TIME FOR BIG INVESTORS TO STEP UP TO THE PLATE LEAD AMERICA
BY INVESTING IN AMERICA"



"WHEN YOU INVEST IN AMERICA YOU INVEST IN YOUR
CHILDREN'S FUTURE"

"INVEST IN A LARGE PROJECT THAT WILL MAKE A DIFFERENCE FOR THE FUTURE"
Similar to this idea;


In past history when the USA needed a Moral Boost to our Country we built
such things as;

The Largest Bridges, Dams, Statue Of Liberty, Worlds Largest Futuristic
Fair, Landed on the Moon etc. It is overdue for us and time for us to build the
Largest & Best Futuristic CITY IN THE WORLD, using ALL OF OUR CUTTING EDGE
TECHNOLOGY AND ALL OF CHINA'S, GERMANY, RUSSIA and all other Countries CUTTING
EDGE TECHNOLOGY and BEYOND ALL OTHERS ! !

We need to find a location in the USA somewhere that has the space for our
"FUTURE WORLD PROJECT" where this ENTIRE CITY will Utilize all of the Newest
and Cutting edge combined technology in the world to build our City using
entirely GREEN energy with 0 pollution ! ! !

(This City Would Also Have A NEW VERSION OF THE STATUE OF LIBERTY, Holding the
torch in one hand and OUR SPACE SHUTTLE or GREEN PLANET EARTH in her other hand
raised high and

looking into the sky ! ! to our City..Too Cool Or What..) I would love to
be part of this project and so would America ! !

This would make a GREAT FILM & Could be based on a True Story with the help of
A TEAM OF BIG MONEY INVESTORS ! ! !

Use your Imagination and think how GREAT THIS WOULD BE FOR AMERICA & OUR
ECONOMY ! !

" COULD BE AN HISTORICAL EVENT IN OUR HISTORY BOOKS FOR OUR NEXT
GENERATION TO FOLLOW"

Thank You, Respectfully, Michael V. Caldwell, Proud American
Inventor/Dreamer..Dream Big..Do Big..

(Always Striving To Be Part Of The Solution Using Respect & Ameri-Can-Do
Attitude )

December 23 2010 at 8:36 PM Report abuse rate up rate down Reply