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Twitter ready for “imminent acquisition spree” with over £1 billion to spend

Following a successful IPO last week, Twitter now has an estimated $1.8 billion (£1 billion) to spend on new acquisitions, with some analysts claiming that dozens of private companies have already been targeted.

Same Hamadeh from Privco, the business and financial research firm, said in a research note: "Twitter has a long mergers and acquisitions shopping list with dozens of target private companies the microblogging service is targeting for purchase."

After its debut on the New York Stock Exchange (NYSE) last week, the micro-blogging site's valuation soared to $24 billion (£15 billion), a price that overlooks "fundamental issues" according to one of Britain's leading accountancy firms, BDO.

Twitter's IPO prospectus released last month confirmed BDO's warning, revealing that despite having over 230 million global users, the San Francisco-based company made a net loss of $79.4 million (£49.1 million) last year.

However, Hamadeh believes that continued investment in growth, combined with new acquisitions, will soon turn that loss into profit.

"Twitter will use its rich stock to buy companies straightaway, adding to its revenues and further justifying its high valuation," Hamadeh said.

"In our opinion Twitter will justify its steep valuation through both organic growth and through an imminent acquisition spree."

Companies already acquired by Twitter include mobile messaging company Cloudhopper, ad firm Ad Grok, social search engine Summize, and analytics startup BackType, as well as over 20 others.

It is expected that Twitter will continue to target analytics and ad tech companies to help increase revenue, though which individual companies will be targeted is still unclear.