Monday, January 25, 2010

Twitter Exec: No IPO in 2010

In a video interview with Bloomberg, Twitter COO Dick Costolo said his company will not try to make an initial public offering this year, but instead focus on expanding and making more money.

That’s further affirmation of Twitter’s (Twitter) apparent strategy; co-founder Biz Stone said a month ago that he and his colleagues “are definitely not interested in selling the company.”

Costolo said he expects revenue growth from a new advertising platform that’s coming “very soon,” commercial accounts with analytics features for tracking tweets and traffic, and at least 10 more distribution deals in the future. Twitter has drawn some criticism because the company’s revenues are low for its $1 billion valuation. That is clearly a concern within the company, and something that needs to be addressed before an IPO. “Now we have to go build the business the business that lives up to that valuation,” Costolo said.

Expansion into new areas and features is part of the plan despite slowing growth (or maybe in response to it), but Costolo didn’t go into specifics in the Bloomberg video. He did say that the company will be aggressive in making acquisitions of companies that have something to offer in the areas into which Twitter wants to expand. source: http://mashable.com/2010/01/20/twitter-coo-ipo/

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