2nd August 2011
Twitter has not revealed all the details, but has disclosed that Russian internet investment firm DST is leading one group of investors.
The FT is reporting that DST has invested $400m for a 5 per cent stake with US fund manager T. Rowe Price and a JP Morgan internet fund investing much of the rest.
Half the money will be used to buy back shares from early investors and staff.
The Telegraph is pretty certain that T Rowe Price has added to its stake to the tune of $55m.
But can Twitter make money? Well this article in Technology Review is excellent for seeing where Twitter was and the dilemmas it faced last year. It suggests that among others things fears from Twitter executives about Facebook and Google's response. But this is fast moving sector. Twitter, on paper at least, is worth several billion more now than then.
One key move that may have raised that valuation is Twitters purchase of UK based Tweetdeck. Here the Wall Street Journal's All Things Digital website discusses the deal with Tweetdeck CEO Iain Dodsworth.
Information Week looks at how businesses can use Twitter and gives six reasons why firms should use it and six why not. We give you one from each side.
"A specific person's voice can speak for the company. Rather than just serving as a generic mouthpiece for the company, a Twitter account is maintained by someone visible within the company. This is not merely a PR frontman, but someone intimately qualified to speak for the company and who has some perspective on it from the inside."
"Twitter cannot be used as a one-for-one substitute for other forms of communication. It's not a wise idea, for instance, to ditch your entire help desk or customer-facing support system and replace it with Twitter. If you only have manpower for one and not the other, then it doesn't make sense to swap out something old and proven for something new and relatively untested."
But somehow Twitter needs to get firms to buy advertising as well as considering their tactics for utilising the site.