Twitter, the social-media darling that skeptics say possesses an underpants gnome business model (Phase 1. Collect underpants. Phase 2. ? Phase 3. Profit!) is raising a new round of financing at a $1 billion valuation, TechCrunch reports.
Citing multiple sources, TechCrunch's Michael Arrington says that Twitter will receive at least $50 million from venture investors, including New York's Insight Venture Partners (IVP). CEO Evan Williams told employees the news at a recent all-hands meeting, Arrington wrote.
Investors may be familiar with Insight, which backed Photobucket before it was sold to News Corp.
Facebook, meanwhile, is still the king of all social media, with 300 million registered users worldwide. But don't count out Twitter too quickly. Here in the U.S., the numbers are probably closer than you think. Twitter served 21.2 million unique visitors in August; Facebook served 87.7 million.
And while TechCrunch deserves kudos for this latest scoop -- if it does, indeed, prove accurate (earlier reports of Apple
Whether IVP and other investors are buying into my thesis today isn't clear. But I'm sticking with it. To me, Twitter was always going to be a billion-dollar business; it's just reached it sooner than I (and perhaps any of us) expected.
What do you make of this latest news? Let us know in the comments box below.
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