Twitter at this stage on inconsistency is offering funding to promising startups.
Twitter Inc., the social media giant is not doing well in the market where it has been constantly victimized for competing with Facebook who is far ahead of them in the league. Apart from this, the recent flair in the number of harassment cases reported has also added to their misery. The company at this stage is dealing with several internal and external issues that can result in making survival difficult for them.
It has only been 18 months since TWTR has established its image as public company. At this stage, the company is in a phase of hyper growth and is currently not generating revenues but is more inclined towards losses. However, even then the company is extremely occupied in giving money to other firms through venture capital funding.
The Twitter Ventures arm, the company’s project was one of the few investors in an event that accumulated $80 million so that they can fund Cyanogen- who considers itself to be “a leading mobile operating system pure-play.”
This news was reported by the Wall Street Journal where other investors in the funding included Qualcomm, the popular chipmaker, Rupert Murdoch: the owner of Wall Street Journal and Media Baron
However, Twitter venture arm unit is not much of a surprise for market. Anthony Noto, the former banker at Goldman Sachs helf the position as the chief financial officer in FY14. The person who became the predecessor, Mike Gupta was actually moved to look after the strategic investment sector.
Like Google and Intel, Twitter also wishes to play its part in providing funds to startups that seem to be promising. The company currently plans to invest only small sums on money in such startups.
This encouragement which Twitter has experienced has resulted in strict scrutiny by regulators. The reason behind this is that the company is not so stable itself that it starts to fund other ventures. At one point it is in a loss making stage and the other it is investing in other startups. However, the company has declined to comment over the matter. Thus, nobody really knows what the intentions of the company actually are currently.
The company is taking several steps to make its way to redemption. However, at this stage it is fairly unreasonable to offer funds. Nobody can predict what law enforcement agencies have to say about this matter but one thing remains clear. Twitter’s strategy is not something easy to predict and foretell what they actually want to do in the times to come. Twitter Stock are likely to be affected by this move
No comments:
Post a Comment