Twitter seeks an IPO, possibly as soon as this year. Discussions with the Securities and Exchange Commission (SEC) have been going on for a while, in secret: Apparently, that's legal. Valuation rumors imply the company's now worth around $14 billion, on revenues of just a few hundred million. Can you spell B.U.B.B.L.E?
In IT Blogwatch, bloggers blog #yes.
Vindu Goel, Nick Bilton, David Gelles, and Alexandra Stevenson tag-team the news:
Twitter...is about to take its biggest step yet into maturity. [It's] filed paperwork with regulators to eventually sell shares in an initial public offering.
This is an opportune time for Twitter. [It] already has well above 200 million active users. ... By its own estimates, Twitter was profitable in December...generat[ing] more than $100 million in revenue in the final quarter. ... The company makes most of its money from a type of ad called a sponsored tweet.
the company first filed for its public offering...earlier this summer under the...JOBS Act [using] the confidentiality afforded by the act to tweak numbers and estimates...in part to avoid the calamities that befell Facebook during its public offering. ...the company hopes to go public by the end of the year. MORE
Numbers? Jeff John Roberts and Om Malik talked to "sources" who said this:
Twitter...has recently received bids from hedge funds offering...between $26 and $28 a share, which would value Twitter at $14 billion.
Until now, Twitter’s stock has been trading on the secondary market for between $18 to $22 a share. MORE
How did the company announce the news? How do you think!
We’ve confidentially submitted an S-1 to the SEC for a planned IPO. This Tweet does not constitute an offer of any securities for sale. MORE
So Sam Biddle is typically snarky:
Start getting your pension ready, bubble fans!
In case you're wondering what a "secret IPO" is, because really, what the hell is a secret IPO...basically, this is Twitter's way of putting off revealing its financial cards for as long as legally possible. MORE
But durrrrr is all, like, hurrrrr:
if you think twitter is in the same league as facebook you are deluding yourself. ... i don’t give them more than 3 years.
an average user doesn’t get twitter. ... an average user seamlessly gets...facebook [which] has 6x more users now.
twitter is notorious for fake user accounts. ... i can go right now and buy 1 million twitter followers. MORE
Meanwhile, Tac Anderson sees the twirony:
So Dell has gone private and Twitter is going public. My how times change. MORE