No, Twitter didn’t become publicly-traded overnight: an investment firm has purchased $80 million in Twitter stock on the secondary markets. This news comes on the heels of sources claiming that Twitter is worth up to $10 billion.
Kara Swisher of All Things Digital reports that investment form Andreessen Horowitz has purchased more than $80 million worth of Twitter stock on the secondary markets, buying from early investors and employees who choose to sell their privately-held Twitter stock.
This is a big chunk of change, but it aligns with Twitter’s goals to become a financially viable company, while remaining independent.
Twitter recently closed its latest round of funding in December. The company raise $200 million, with investment firm Kleiner Perkins leading the round. However, Andreessen Horowitz chose not to participate.
That may be why the firm is investing now. All Things Digital reports that sources say the firm bought up the Twitter stock to complete its portfolio of social media investments. It has already invested in Zynga, Foursquare, Groupon and Facebook.
While Twitter won’t actually get any of the $80 million itself (it will go to the private stock holders), this move is a good sign for the company. It shows that venture capitalists are still trying to get a piece of the Twitter pie, however they can.
- Interest in #Twitter is Declining Worldwide (But #Instagram Has Never Been More Popular)
- Tweet Analytics Are Now Available on #Twitter for iPhone
- Twitter Stock Rallies on CEO Resignation Rumor
- Sony Threatens #Twitter With Legal Action Over Tweets Containing Stolen Emails