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Twitter's $200m fundraising sparks off IPO rumours

Microblogging site may go public soon

Twitter has raised new funds worth $200m in a deal that sparked off media rumours that the company is likely to go public soon, the Wall Street Journal's digital news network AllThingsDigital reported on Thursday.

The funds, which came mainly from Silicon Valley venture capital house Kleiner Perkins Caufield & Byers, put the value of the microblogging site at $3.7bn.

Chief executive Dick Costolo's tweet that the new funding will help the company "to grow infinity and beyond" added to the initial public offering (IPO) rumours.

The microblogging site had previously denied considering an initial public offering. However, stock market analysts believe that the size of the new investment along with the enthusiasm in new age social media companies suggest that the Twitter is likely to go public sooner than later.