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

Dead geese near Esquimalt Lagoon draws ire of resident

City says ‘several’ geese struck by vehicles recently

National Indigenous Peoples Day celebrations underway

Hundreds gather at Royal Roads University in Colwood

Emergency crews responding to injured person at Thetis Lake

Extent of injuries unknown at this time

115 new wildfires burning across B.C. due to 19,000 lightning strikes

More fires expected to start today, says BC Wildfire Service officials

Royal Roads appoints new president, vice-chancellor

Philip Steenkamp brings two decades of senior leadership experience

VIDEO: B.C.’s ‘unicycle cowboy’ aspires to be rancher one day

Burklan Johnson has only ridden a horse once, but this unicyclist has big plans to become a cowboy.

Reports of explosion in Okanagan turn out to be squirrel vs. power line

The noise was described as ‘similar to a shotgun blast’ that shook the Earth

A look at what Canadian teams might do in the 1st round of the NHL draft

Montreal, Ottawa, Vancouver and Edmonton in top 10 of upcoming draft

Seasonal transit changes take effect July 2

Improved service to popular summer destinations

Koko, the gorilla who knew sign language, dies at 46

Western lowland gorilla, 46, died in her sleep in California

California court hears tales of shackled, starved children

David and Louise Turpin have pleaded not guilty to torture, child abuse of their 12 children

Trudeau in nothern B.C. to announce pledge to protect oceans

Prime minister announces conservation agreement with 14 First Nations

FIFA World Cup weekly roundup

Host nation Russia remains unbeaten in Group A, tied with Uruguay

Most Read