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

Alberni Valley Community Foundation seeks grant recipients

The Alberni Valley Community Foundation is accepting applications for grants to be… Continue reading

BCHL: Bulldogs beat Cowichan in double OT

Teams are 1–1 in three-game home-and-home stand; play in Cowichan Jan. 20

Port Alberni city council to ‘stay on course’ for five-year budget plan

Next budget meeting is scheduled for Monday, Jan. 29 at 6 p.m

Alberni businesses nominated for Island excellence

Coulson Ice Blast, Port Posh Wash, the Blue Marlin Inn and Totem… Continue reading

BCHL: Speedy left winger commits to Bulldogs

Forward Ethan Jang will be suiting up for the 2018-19 season

Parksville MakerSpace members ride the rails

New room added for model train enthusiasts; workshop set for Jan. 21

Wind warning back in effect around Vancouver Island

80 km/h winds expected Saturday, Jan. 20, on east coast of Island, 100 km/h on west coast

Man receives four-year sentence for stabbing Good Samaritan near Qualicum Beach

Jeffrey Brian MacDonald sentenced to additional 242 days in jail

VIDEO: Thousands join women’s march events across B.C.

Today marks one year since the first Women’s March on Washington

UPDATE: BC Transit’s handyDart service strike delayed

LRB application by contractor means new strike notice must be issued by union

Two Canadians, two Americans abducted in Nigeria are freed

Kidnapping for ransom is common in Nigeria, especially on the Kaduna to Abuja highway

Are you ready for some wrestling? WWE’s ‘Raw’ marks 25 years

WWE flagship show is set to mark its 25th anniversary on Monday

B.C. woman who forged husband’s will gets house arrest

Princeton Judge says Odelle Simmons did not benefit from her crime

Women’s movement has come a long way since march on Washington: Activists

Vancouver one of several cities hosting event on anniversary of historic Women’s March on Washington

Most Read