BlackRock to buy $80 million Twitter stake: source

SAN FRANCISCO Sat Jan 26, 2013 5:09am IST

A Twitter page is displayed on a laptop computer in Los Angeles October 13, 2009. REUTERS/Mario Anzuoni

A Twitter page is displayed on a laptop computer in Los Angeles October 13, 2009.

Credit: Reuters/Mario Anzuoni

Related Topics

Stocks

   

SAN FRANCISCO (Reuters) - BlackRock, the world's largest asset management company, has taken an $80 million stake in Twitter Inc, a person with knowledge of the deal said Friday.

The six-year old social media company will not raise new capital as part of the private deal that values the firm at more than $9 billion. BlackRock will buy shares directly from early Twitter employees seeking to liquidate their stock holdings and options.

Twitter's new valuation represents a slight rise from late 2011, when the company facilitated a similar tender offer with Prince Alwaleed bin Talal of Saudi Arabia that valued the company at a reported $8.4 billion.

Twitter sought investors for another tender offer last summer in the wake of Facebook Inc's botched initial public offering in May, but did not complete the deal until recently, according to people with knowledge of the situation.

In recent years other tech companies including Facebook, Groupon Inc and SurveyMonkey have used similar transactions to cash out existing employees and delay an initial public offering. Twitter itself is rumored to be a potential IPO prospect within two years.

Several hundred Twitter employees, including many who joined the company before 2009, will be eligible to sell their shares as part of the transaction.

(Reporting By Gerry Shih; editing by Andrew Hay)

FILED UNDER:

Social Media

Tech Showcase

Google in Europe

Google in Europe

EU lawmakers urge regulators to break up Google  Full Article 

Internet Devices

Internet Devices

Internet-connected device sector deals accelerating, report finds  Full Article 

Message to Mars

Message to Mars

Earthlings to send 90,000 hellos to Mars  Full Article 

Uber Setback

Uber Setback

Ridesharing firm Uber suspends operations in Nevada  Full Article 

E-Commerce Boom

E-Commerce Boom

Online grocers come up trumps in India's e-commerce boom   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage