Twitter, via a tweet, says it's filed for an IPO

Twitter logoAfter months of speculation, Twitter has finally set its initial public offering in motion.

Twitter sent out a tweet on its own Twitter account saying that it had "confidentially submitted an S-1 to the SEC for a planned IPO."

A Twitter spokesperson confirmed the tweet but declined to elaborate.

Twitter, via a tweet, says it's filed for an IPO

By "confidentially" submitting the S-1 document to the SEC, Twitter is taking advantage of a provision under the 2012 JOBS Act that lets companies with under $1 billion in annual revenue file its initial documents with the Securities and Exchange Commission confidentially.

"Only after that give and take," said Jay Ritter, a professor of finance at the University of Florida, "if they still want to go public ... is it required to file a public registration that the world can see."

The seven-year-old Twitter, which to date has raised $1.16 billion in venture capital, and which employs more than 2,000 people, has more than 200 million monthly active users. Research firm eMarketer estimates that Twitter will capture 1.85 percent -- or roughly $308 million -- of the $16.65 billion worldwide mobile ad market this year, and should have nearly $1 billion in advertising revenue in 2014.

Assuming all goes smoothly, Ritter expects Twitter will go public in roughly three months. About a month from now, he added, Twitter will likely file its formal registration statement, at which point potential investors can see the details of the business.

Twitter's announcement comes as its closest competitor, Facebook, is at last doing well on Wall Street. In the first months after Facebook's initially disastrous IPO, most thought that Twitter's hopes for going public had sunk with Facebook's stock. But just yesterday, Facebook's stock, on the strength of dramatically improved mobile revenues, hit its all-time high. Indeed, in an interview at TechCrunch Disrupt yesterday, Facebook CEO Mark Zuckerberg said Twitter should not be afraid of going public.

Twitter's IPO fortunes have generally been tied to that of Facebook because of the similarities between the two companies. In a recent report, Pew found that as of May 2013, 72 percent of online U.S. adults use social-networking sites, up from 67 percent in late 2012. Clearly, then, the market for companies like Facebook and Twitter is growing.

Twitter, too, has been preparing for its IPO for quite some time, acquiring companies and making feature decisions geared towards maximizing revenues.

Source: CNET

Tags: Twitter

Add comment

Your name:
Sign in with:
Your comment:

Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party

Last news

A mobile hotspot in Australia will be capable of hitting gigabit speeds on the go
A new game could be in the works as Blizzard appears to have been hiring for a Diablo-related project
Nokia CEO Rajeev Suri will speak at MWC 2017
However what if you could go way, way back?
The Helio P15 packs an octa-core Cortex-A53 processor clocked at 2.2GHz
Samsung claims up to 27-percent higher performance or 40-percent lower power
Preliminary data for October shows another Windows 10 boom
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
HP Slate 7 is a 7-inch Android 4 Tablet PC with good sound
A cost-effective, 7-inch tablet PC from a renowned manufacturer
October 25, 2013 / 4

News Archive



Do you use microSD card with your phone?
or leave your own version in comments