BlackRock to buy $80 million Twitter stake - source
By Gerry Shih | January 26, 2013 10:42 AM EST
BlackRock, the world's largest asset management company, has taken an $80 million (50 million pounds) 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 rumoured 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)
Most Popular Slideshows
- Jeremy Lin, Kobe Bryant Among The Top 5 Overpaid Players In The NBA (Part 1 - Western Conference)
- Reasons Why Michael Jordan Is Better Than LeBron James [PHOTOS And VIDEO]
- Dwyane Wade, Joe Johnson, Amare Stoudemire Among Worst Contracts In The NBA (Part 2 - Eastern Conference)
- Brawl-Marred Game in NFL Week 3: Philadelphia Eagles 37, Washington Redskins 34 [PHOTOS]
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- New Samsung Galaxy Note 4 and Galaxy S5 Android 5.0 L Killer Features, Encryption and More
- Nexus 6, 8 Release Date is Halloween 2014 as Android L Intro Set for October 16
- Moto G 2014 v Asus Zenfone 5 – Specification Comparison Shows Zenfone 5 Is A Good Alternative for Moto G
- Android 5.0 L Nexus 4, Nexus 5, Nexus 7 Release in October, Google Employees Offer Hint
- Nexus 8, Nexus 9 Release Date, Device Name And Price Conundrum: What To Expect?
- Microsoft Doubles OneDrive Space To 30GB Due To iOS 8 Update Issues
- New Zealand Could Be Next ISIS Target After Australia Beheading Plot, Says Expert