Twitter has raised another $200 million of financing in a deal that values the microblogging service at almost £2.4 billion.
The funding from existing and new investors shows huge trust that Twitter can eventually make significant returns on its various advertising and licensing initiatives.
‘It’s a huge multiple,’ said BGC Partners analyst Colin Gillis, who estimates that Twitter’s annual revenue is currently under $100 million.
On its blog, Twitter said only that the extra cash, ‘will help us continue to grow as a company and business’.
The investment and appointment of two new board members — FlipBoard Chief Executive Mike McCue and DoubleClick CEO David Rosenblatt — comes two months after the company appointed Dick Costolo as its CEO. Costolo was the architect of its advertising efforts and his appointment was taken as a sign that making money is a priority for the service.
Costolo told Reuters in May that Twitter planned to have hundreds of advertisers using its three-pronged ‘Promoted’ advertising programme by the end of the year.
