Sunday, November 16, 2014

Twitter Was Given Debt in Its Trouble



Recently, twitter has trouble in its growth, so it was given debt by US ratings agency Standard and Poors, according to Digital Marketing Agency reported.

“Twitter's $1.8bn (£1.1bn) September debt issue - IOUs sold to investors in return for interest - were worthy of a "speculative" rating of BB-, three notches below investment grade”, as S&P said.

“The company is investing very aggressively in growth. Depending on the level of business reinvestment, Twitter may not generate positive discretionary cash flow until 2016,” S&P said in a note.

Leading to twitter reported in October, “There is a disappointing 7% fall in timeline views per user - a closely watched measure of engagement - despite a 23% growth in its user base in the third quarter”.

The company said, “its fourth-quarter revenue might fall short of market expectations of $448.8mn (£283mn)”.

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