Major Twitter Investor Pulls Back, Says Company Is “Internal Mess”

Filed as News on October 5, 2011 2:23 pm

Twitter Bird

From the outside looking in Twitter appears to be doing great, 400 million people use the site on a monthly basis and they recently raised $800 million, that’s why it was surprising to learn that a major investor has unloaded a large portion of their shares.

According to the investor:

“I like the guys at Twitter. They’re still pushing ahead on acquisitions and business development,” while adding, “But the problem internally at Twitter is that it is going through major growing pains.”

While growing pains are normal at rapidly growing company the investor says:

“There’s the question, do I focus on users, or do I focus on business?…And the thing that falls to the wayside is internal management.  A lot of people [at Twitter] don’t know who they report to; they don’t understand who’s responsible for certain deals. That’s the stuff that ultimately makes companies crumble from the inside.”

The investor says they also expect Twitter’s IPO to be at least 18 months away since their $800 million funding round means they have plenty of cash to play around with and since they still need to figure out their internal workings in order to instill confidence in investors.

That same source tells Business Insider:

“There’s no way it’d even be able to pull itself together for an IPO. I’m talking about not even a filing,” says the source.  “Twitter has way too much growing up to do before it can do that, and that’s just for internal reasons.”

Do you fell as if Twitter has a lot of growing pains to sort through before they can become an efficient business?

Read more: http://www.businessinsider.com/twitter-internal-mess-2011-10#ixzz1ZvpInWyo

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