Who is it bankrolling Twitter?

[Mildredop]

So Twitter has never turned a profit and, in their earnings call yesterday, they reported a net loss of $162m for the quarter, up from £132m the year before.

Unless I'm mistaken, it's costing something like $1.8m per day to run Twitter.

So, who is funding that and why??

 

[heehee]

Twitter raised over US$57 million from venture capitalist growth funding, although exact numbers are not publicly disclosed. Twitter's first A round of funding was for an undisclosed amount that is rumored to have been between US$1 million and US$5 million.[157] Its second B round of funding in 2008 was for US$22 million[158] and its third C round of funding in 2009 was for US$35 million from Institutional Venture Partners and Benchmark Capital along with an undisclosed amount from other investors including Union Square Ventures, Spark Capital, and Insight Venture Partners.[157] Twitter is backed by Union Square Ventures, Digital Garage, Spark Capital, and Bezos Expeditions.[159]

In May 2008, The Industry Standard remarked that Twitter's long-term viability is limited by a lack of revenue.[160] Twitter board member Todd Chaffee forecast that the company could profit from e-commerce, noting that users may want to buy items directly from Twitter since it already provides product recommendations and promotions.[161]

By March 2009 communications consultant Bill Douglass predicted in an interview that Twitter would be worth $1 billion within six months,[162] which came to pass when the company closed a financing round valuing it at $1 billion in September of that year.[163]

The company raised US$200 million in new venture capital in December 2010, at a valuation of approximately US$3.7 billion.[164] In March 2011, 35,000 Twitter shares sold for US$34.50 each on Sharespost, an implied valuation of US$7.8 billion.[165] In August 2010 Twitter announced a "significant" investment lead by Digital Sky Technologies that, at US$800 million, was reported to be the largest venture round in history.[166]

In December 2011, the Saudi prince Alwaleed bin Talal invested $300 million in Twitter. The company was valued at $8.4 billion at the time.[167]

Source: http://en.wikipedia.org/wiki/Twitter#Initial_public_offering_.28IPO.29

 

[roadbloc]

Rich people are footing the bill. Which is kinda nice of them for those who like Twitter I guess.

 

[maflynn]

Twitter received billions of dollars when they did their IPO, no one but stock holders is bankrolling Twitter. The money they raised for from the IPO is what they're using at this point.

Plus a loss may not always be a loss, in the sense of writing off expenses and what not, i.e., they may not be seeing less money in the bank, after they start deducting expenses.

 

[turtle777]

Twitter received billions of dollars when they did their IPO, no one but stock holders is bankrolling Twitter. The money they raised for from the IPO is what they're using at this point.

Plus a loss may not always be a loss, in the sense of writing off expenses and what not, i.e., they may not be seeing less money in the bank, after they start deducting expenses.

What you're referring to is Cash Flow.

TWTR hasn't had positive free cash flow ever.

http://www.marketwatch.com/investing/stock/twtr/financials/cash-flow

-t