Twitter confirmed a “significant” round of funding led by venture company DST Global today. In a post on the corporate blog, Twitter said several existing investors were also involved and that the resources would be used to innovate and expand internationally.
Neither party is providing further details, but AllThingsD reports the deal is likely to be worth $400 million plus perhaps $400 million in secondary funding. This investment model means that early investors, founders and employees can cash out at this point. DST Global has used this investment strategy before with companies including Facebook, Groupon and Zynga.
The influx of funding comes on the heels of Twitter getting more serious about its Sponsored Tweets program. On Thursday the company said it was making these micro-messages “easier to see” by placing them at or near the top of users’ timelines, providing the user follows the relevant brand, business or charitable organization. It also said this would ensure these consumers would “be among the first to get a special announcement, access to exclusive content or a great offer.”
Among the company’s participating in this sponsorship opportunity are Dell, Groupon, HBO, LivingSocial, Microsoft Xbox, Red Bull, Sephora, Starbucks, Summit Entertainment’s “50/50”, and TNT. Sponsored tweets for some non-profit organizations will also appear in the timelines of their followers, including charity: water, Make-A-Wish Foundation, Room to Read, The American Red Cross and Water.org.
Related Links:
Twitter’s financing post – http://tinyurl.com/3vlkxqw
AllThingsD post – http://tinyurl.com/4yy6yh7
Twitter’s Sponsored Tweet post – http://tinyurl.com/3wr4a9g
