Twitter files for IPO; Revenues to top $500 million in 2013

The long-awaited IPO has come to fruition, the social media company announced on Thursday via – you guessed it – its own Twitter account.

The Twitter bird. The one that Tweets.



Twitter has filed for its long-awaited IPO (initial public offering), the company announced via its on Twitter page on Thursday.

The announcement has led to much excitement from other news and business news outlets – as well as investors – because the filing of S-1 will give the public its first true look into Twitter’s financial numbers.

“S-1 IPO filings with the SEC require that the company disclose its historic and current revenues, profits and balance sheet holdings, prior to selling stock to the public,” said the website Business Insider.

This year, the micro-blogging company is expected to do over $500 million in revenues and has grabbed over $1 billion from investors.

————————————————————

————————————————————

On Saturday, the San Francisco Chronicle reported that Twitter’s relatively new financial chief, Mike Gupta, was talking to banks about handling the company’s IPO.

*UPDATE: The Wall Street Journal and Bloomberg have reported that Goldman Sachs will handle Twitter’s IPO as its lead underwriter, despite its involvement in the opening of Facebook’s stock with lost billions of dollars for investors and resulted in a lawsuit aimed at Goldman Sachs.

The move is arguably the most-anticipated IPO filing since Facebook, the other of the world’s two highest-profile social media sites. Facebook’s stock hit Wall Street on May 18, 2012, and opened to now infamous disappointing numbers.

Facebook’s IPO started with a peak market capitalization of $104 billion, and shot up to an early high of $45 per share, which fell to $38.23 at the end of the first day, just $38.00 above its initial offering.

After 68 days, Facebook’s stock had fallen to $20.011 per share, a net change of negative 47 per cent.

Because of the swell and subsequent drop following Facebook’s IPO, it leaves some to worry about a company like Twitter which, although not following the exact same model, is still a “social media” company that has built its revenue on perhaps an unequal share of online advertising revenue, fund investment, and presumed value.

“A lot of people are trying to understand, ‘How does this thing work? How does it make money?'” said Peter Fenton, a Twitter director and partner at Benchmark Capital who conveyed confidence in Twitter CEO Dick Castolo, who came over from Yahoo.

“He has a layman’s ability to simplify and express it in a way that’s not overly complicated.”

Estimates have Twitter increasing their advertising revenue to $1 billion for next year.

Just Posted

Indigenous youth connect with their culture at Gathering Our Voices workshops

Secluded Wellness Centre in Port Alberni hosted traditional wildcraft sessions

Illegal cannabis club in Port Alberni ticketed again

RCMP seize cannabis, issue fine for second time in five months

Motorists attempted CPR on victim in fatal Highway 4 crash west of Whiskey Creek

Witnesses say three vehicles involved in collision; man in 70s confirmed dead

Chef returns to North Island College to inspire young cooks

Tina Tang shares her culinary journey since graduating

Real-life tsunami threat in Port Alberni prompts evacuation updates

UBC study says some people didn’t recognize the emergency signal

Port Alberni Fire Department engages Indigenous youth in fire awareness

Workshop took place as part of Gathering Our Voices event in Port Alberni

1,300 cruise ship passengers rescued by helicopter amid storm off Norway’s coast

Rescue teams with helicopters and boats were sent to evacuate the cruise ship under extremely difficult circumstances

B.C. university to offer first graduate program on mindfulness in Canada

University of the Fraser Valley says the mostly-online program focuses on self-care and well being

Province announces $18.6 million for B.C. Search and Rescue

The funding, spread over three years, to pay for operations, equipment, and training

Late-season wave of the flu makes its round in B.C.

BC Centre for Disease Control reported 50 per cent jump in flu cases in first weeks of March

Tofino’s housing crisis causing some to seek shelter at the local hospital

Tofino’s housing crisis is pushing the town’s ‘hidden homeless’ population into the forefront.

Sentencing judge in Broncos crash calls for carnage on highways to end

Judge Inez Cardinal sentenced Jaskirat Singh Sidhu to eight years

2 fires in Victoria caused by cigarettes prompts warning from deputy fire chief

Two separate fires caused by cigarette butts were avoidable

Wildlife activists slam B.C. business, clubs for ‘wolf-whacking’ contests

Chilcotin Guns, Creston Valley Rod and Gun Club and West Kootenay Outdoorsmen Club under fire

Most Read