For those watching Twitter’s financials, CEO Dick Costolo’s answer to a media question yesterday about a possible IPO (initial public offering) of stock probably didn’t come as a surprise: don’t expect one in the near future.
Costolo sat down with a few dozen members of the San Francisco media on Thursday to discuss the state of Twitter – announcing a massive number of active users, billions of tweets sent every few days and other stats about the company.
But what was really interesting, especially to those following Twitter’s financial moves, was his response to a question posed by one of the journalists about whether Twitter would seek an IPO any time soon.
And Costolo said “no”.
Well actually, according to Yahoo, he said:
“We now have what can only be referred to as a truckload of money in the bank. We did that because we want to be in control of our destiny and grow the company the way we want to.”
Yep, a truckload of money. And it’s this money that will keep Twitter operating independently, at least for the time being.
Twitter recently closed a “significant round of funding” speculated around the $800 million range. They raised that money in part to buy out current investor and employee stock, but also in part to invest back in the company.
Twitter has been doing well lately in keeping itself online during heavy tweeting times like (it’s true) Beyonce’s pregnancy.
Plus, the company is working hard on solidifying a business plan. They’re expanding Promoted Products in order to make money from the hundreds of millions of users they currently have visiting Twitter.com every month.
How long do you think Twitter will hold out before it offers its IPO?