Twitter CEO: No Need For IPO, Business Running Just Fine

By David Zielenziger | May 02 2012 9:58 AM

Twitter, the social media site that already claims 100 million members, is running fine and sees no need for an initial public offering -- at least not yet CEO Dick Costolo said.

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Twitter has recently come out with new updates for its iPhone and Android apps. The social networking powerhouse tweaked the design and added a number of improvements to the mobile version of the microblogging service.

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We're confident we've got a hit on our hands, he said at a New York conference sponsored by Wired, according to PEHub. This business will be a really big business.

The San Francisco-based site is fully aware of the impending IPO by Facebook, which claims 901 million members and wants to raise at least $5 billion in an IPO that could be declared effective this month, Costolo said. Timing IPOs is silly and short-sighted thinking, he said.

Google (Nasdaq: GOOG), the No. 1 search engine, went public when it wanted to, the Twitter CEO said. If you have a great business and it's satisfying to you and growing along with your projections, you aren't beholden to a window of opportunity when [the] market is hot.

Twitter has sufficient cash from private financing to manage growth, Costolo said. Tweets provide sufficient ground for growth, advertising and content presently, although other products could be coming, he said.

Twitter last year raised $200 million from Kleiner Perkins Caufield & Byers, as well as other sources, including Russia's Digital Sky Technologies, which valued the company around $3.7 billion.