This is the first time ever that Twitter decided to tap their debt market. They are planning to raise 1.5B USD for acquisition and expansion to be part of their investment portfolio.

As projected, Twitter will not be gaining profit until the end of 2014 and since this is the case, this well-known company created various forms of investment. One of which is to widely promote and advertise their market. They plan to expand the number of engineers working for them to hit their goal and to entice a larger group of people. 

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According to an individual highly knowledgeable about this matter, Twitter's executives find the debt market as a great opportunity to preserve their investment. This way, their cash flow would start running again without the reduction of their shareholder's profit.

Early this year, Google, the largest and most popular search engine in the world made ways to refinance their matured debt of about 1B USD - a move to help finance capital spending. Accordingly, Netflix also sold notes reaching 400M USD in February of this year.

Google Inc. along with Netflix Inc. are two of the major companies that inspired Twitter to push through with this project. Nonetheless, offering debt should be maintained at a low price as borrowing is also part of it.

Anthony Noto is a former banker of Golden Sachs Group Inc. He took over Mike Gupta, Twitter's chief financial officer. Two months after his appointment, the project of debt offering and borrowing was started. Natalie Miyake, Twitter's spokeswoman, left no comment regarding this matter. 

Twitter was able to raise 1.82B USD and made small purchases which include 134.1M social-data provider, Gnip. They also agreed to purchase CardSpring Inc. which is a service provider that offers redeemable deals and discounts based on the number of tweets their merchants make. 

As of June 30, 1B USD of Twitter's circling fund has impressively remained untouched.

TagsAnthony Noto, Twitter's spokeswoman, Google Inc.