Twitter ready to splash out... and run ads

 

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By Reuters

Posted on 24 Nov 2009 at 13:40

Micro-blogging site Twitter is interested in making more acquisitions as it continues to grow in popularity, according to co-founder Biz Stone.

"That is something we are definitely interested in," Stone told a news conference. "We made an acquisition last year that turned out to be an outstandingly good decision." Twitter bought search engine Summize in 2008.

Stone said there was nothing specific on the horizon. "As our attention is grabbed by some of these developers, we will take a hard look at them."

He added that Twitter will "start making money" in 2010 as it unveils a plan early next year on how it will produce revenue through advertising. He declined to give details but said advertising will be "non-traditional."

"There are no dates when we need to break even. We have plenty of money in the bank," he said.

In September, Twitter received a new round of funding from investors including mutual fund giant T. Rowe Price and private equity firm Insight Venture Partners, which analysts said set the stage for an eventual initial public offering or sale.

According to a person familiar with the matter, the new funds totalled $100 million, theoretically valuing the company at $1 billion.

Stone admitted that Twitter may eventually go to the stock market for funding if necessary.