Twitter is once again following in Facebook’s footsteps and raising a lot of money before focusing on revenue…

To be perfectly fair, if Facebook’s $500M 2009 revenue figure is correct, it might not be that bad of an idea.  However, this means Twitter will ultimately have to IPO because with a $1B paper valuation, getting any kind of return in an M&A will be unlikely.  Sure, some tech companies like Google, MSFT, Cisco and Apple have a lot of cash on their balance sheets, but with most media buyers being battered and bruised, I am not sure if an M&A is in the stars.

So if an IPO is the long term bet, then it’s fitting to see T. Rowe Price joining Insight Venture Partners to pony up the $100M to Twitter’s war-chest.

T. Rowe Price previously invested in Slide’s $500M round, so I guess this new Twitter investment is either

- proof that they are happy with their Slide investment despite what some of the cynics were saying,

or

- an example of poor diversification in every sense of the word.

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