Twitter Gets $300 Million Investment

The Twitter Incorporation, known for being one of the top five social networking platforms on the Internet today, with over 100 million different users, has recently received an investment of $300 million from the Saudi Prince Alwaleed bin Talal while working to redesign the website and attract more advertisements and advertisers, according to Bloomberg Businessweek.

Alwaleed is on the Arab Rich List and is known for having millions of dollars himself. The company that Alwaleed is invested with has agreed to make an investment with Twitter. They will have a strategic holding worth more than 3 percent of the website. The Twitter company will now be worth more than $10 billion.

With the new investment from Alwaleed, Twitter will be able to have  time to grow and expand even further before it begins to sell shares with the public. This is a path that Facebook, Twitter’s number one rival, will likely pursue as well. Twitter plans to make quite a few changes to the look and layout of the website as a means of being more convenient to users and also attracting new users to the website. Twitter is known for allowing users update status and create 140-character messages that are short yet to the point. There are many celebrities who use Twitter as a means of connecting with fans as well.

When speaking about Twitter and the new investment, Jeff Mann, the analyst for Gartner, located in Amsterdam, has said, “They are looking to give themselves some more running space.” He also says, “Their strategy has always been first get big. They’re still holding reasonably close to that. Having a big audience is more important than a short-term revenue stream.”

While Twitter did confirm that the investment from Alwaleed is, in fact, a real deal, the company refused to give out any extra comments surrounding the investment. The fund manager at Robeco Groep NV, Jack Neele, has said, “Twitter is seen as a strategic asset within the social media space, given its large user base.” Neele also says, “But the business model in its current form isn’t ready for the public market.

In the future, Twitter has hopes to release some new advertisement strategies and features which will help them with their revenue stream. Advertisement are, in fact, the main source of income for the website. The website also hopes to make changes to the layout so that users of the popular social networking website will be able to access their pages with ease and also checkout the content of their followers quite simple and easily. While Twitter has not rolled out a lot of new services in the past, this is expected to change within the next few months, especially with the new investment being made.