Twitter co-founder Biz Stone is completely denying the rumors that JPMorgan will invest $450 for a 10% stake in Twitter. He has come on record to say that Twitter has no plans to go public in the near future, nor does it need additional capital from an outside source, as it is making money on its own.
Stone spoke with Reuters about Twitter’s financials at a business forum in Seoul on Thursday.
He stated clearly that Twitter has no plans to raise any more capital in at least the next 12 months. When asked about an IPO, Stone replied “We have so many other things before we even think about that… It’s too far off.”
Stone also directly addressed the rumors which stemmed from a Financial Times article that JPMorgan’s new social media fund would invest $450 million into Twitter for a 10% stake in the company. He outright said that “(the report) is made up.”
Twitter is rapidly expanding, looking for London-based sales staff and rumored to be opening a European office later this year. The company had just closed a $200 million round of funding with Kleiner Perkins leading, in December.
With this new capital and staff, Twitter is expanding its advertising solutions, known as Promoted Products. These Promoted Tweets, Trends and Accounts appear in users’ timelines when they search for specific hashtags or keywords or as a result of an algorithm, and they can cost upwards of $100,000 for a 24 hour time period. Twitter expects that this advertising will generate the bulk of its revenue. Marketing firm eMarketer speculates that Twitter will earn $150 million in revenue from these ads alone in 2011.