Twitter is rumoured to be looking for one of those DST-style deals where founders, early investors, and early employees sell stock to a holding company and an IPO gets put off a couple years.
Typically, these startups have three things in common. They have…
- Lots of employees.
- Huge user adoption.
- Big, fast-growing revenues.
Twitter has lots of employees and huge user-adoption.
But according to a source who has looked at Twitter’s books, the company, despite a plethora of new ad products – promoted tweets, promoted trends, and promoted users – does not yet have revenues anywhere near scale.
This isn’t to say Twitter won’t get a huge, DST-style investment. It’s just to say that it won’t happen thanks to big revenues.
Of course, this news isn’t exactly a shock. The whole reason Twitter made Dick Costolo CEO is that the board hopes he’ll be better at turning the thing into a business than Ev Williams was.
We would have reached out to Twitter for this story, but they never ever get back to us anyway. (It’s some sort of punishment for negative coverage.)