AllThingsD is reporting that Twitter is set to close a $800 million round of funding within the next two weeks, which would put the company’s valuation at $8 billion – over double it’s December 2010 valuation of $3.7 billion.
The $800 million would be split basically in half, with Twitter itself receiving $400 million as an investment and using the other $400 million to cash out current investors and employees.
AllThingsD is citing several sources as saying that this transaction will be complete in about two weeks:
“Along with basic funding needs, this is largely being done this way to give those with stakes in the San Francisco microblogging company an ability to monetize their privately held common stock and also to do this selling in a more organized — and legal — manner.
That is especially important since the company is not likely to go public for at least a year or more. And, while it could also be sold to a bigger company such as Google, that is also not in Twitter’s immediate future.”
The $400 million investment will come from some new and some current Twitter investors. One of the new investors is expected to be DST Global, the company that was rumored to be interested in the December 2010 fundraising venture but which didn’t end up investing. J.P. Morgan’s digital investment fund is also expected to participate as a first-time Twitter investor.
Twitter’s last round of funding closed in December, with the company raising $200 million from lead investor Kleiner Perkins. At the time, Twitter was valued at $3.7 billion.
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