Does Twitter Need DST Dollars?
Russian investor Yuri Milner has a voracious appetite for Web companies, having plowed hundreds of millions of dollars buying stakes in companies like Facebook and Zynga, and buying instant messaging service ICQ outright.
And he’s not finished.
In an interview with Britain’s Sunday Telegraph, Milner, the CEO of Digital Sky Technologies, said he was eyeing a few dozen Internet companies around the world for new deals.
While Milner declined to name any specific investment targets, he pointedly refused to rule out buying a stake in Twitter, according to the article.
So are DST and Twitter talking?
Funnily enough, Reuters asked Twitter COO Dick Costolo that very question last week during the Reuters Global Technology Summit.
The query elicited a chuckle from Costolo who then provided the following answer that doesn’t specifically rule out the possibility that the two companies could have talked.
Reuters: I think you guys are probably one of the only companies that hasn’t done a deal with Digital Sky Technologies. Have they approached you or expressed any interest at all in doing something like that?
Costolo: We talk to lots of people all the time, and there are lots of people that we talk to about the future of Twitter and what we’re going to do in the future and whether we are or aren’t going to raise money. And we’ll have those conversations constantly, I imagine.
Asked whether he saw the need for Twitter to raise any more money, Costolo said the answer would depend on how the new Promoted Tweets ad system and the forthcoming commercial accounts perform.
“I don’t know the answer to that,” Costolo said about raising more money. “We’ll know more when we know what our revenue looks like,” he added, noting that the company would have more information to make a decision in the third quarter.
Twitter raised $100 million from a variety of firms in September, according to a source familiar with the matter. Costolo confirmed to Reuters last week that the funding valued Twitter at $1 billion.
“The thing I keep coming back to is, that is not anything we worry about at all right now,” Costolo said about the potential for raising further capital. “We are in a great cash position, and it’s allowing us to go be even more careful than probably most other companies would be, on the pace with which we roll some of this stuff out.”