Accordingto Fortune, Twitter has completed both tranches of its simply enormous$800 million round of financing. The investment was abnormal, as only half of the money was directly put into Twitter (by DST), with the remaining $400 million set aside to cash out extant shareholders.
Fortune’s sources state that now the second section of the deal is complete. Several high-profile investors took the opportunity to cash out part of their holdings of Twitter stock, including Spark Capital and Union Square Ventures. On the other hand, Benchmark Capital and Insight Venture Partners did not take the opportunity to sell.
The round valued Twitter at more than $8 billion, implying that DST’s holdings of the company are now quite impressive.
The ability to cash out certain partners, employees, and others who bought parts of Twitter on secondary exchanges is important, as it reduces the total number of shareholders in the company. According to certain US government regulations, once a company has 500 shareholders or more, it must report its financials publicly.
Calling all Scaleup founders! Join the Soonicorn Summit on November 28 in Amsterdam.
Meet with the leaders of Picnic, Miro, Carbon Equity and more during this exclusive event dedicated to Scaleup Founders!
Twitter, assumed by most to be running in the red, is likely not excited at that prospect. For now, it seems safe, and well financed.
Story byAlex Wilhelm
Alex Wilhelm is a San Francisco-based writer. You can find Alex on Twitter, and on Facebook. You can reach Alex via email at alex@thenextweb(show all)Alex Wilhelm is a San Francisco-based writer. You can find Alex onTwitter,and onFacebook.You can reach Alex via email atalex@thenextweb.com
Get the TNW newsletter
Get the most important tech news in your inbox each week.
