Social Media Giants Twitter to List $1.5bn IPO on NYSEAssociation of Business Training
September 25, 2013 — 855 views
Twitter is a social media organization that has grown in popularity all over the world since its inception back in 2006. In 2012, Twitter had over 500 million active users which posted close to 340 million 'tweets' per day. The corporation has been described by many people as the 'SMS of the Internet'. Users of Twitter are allowed only 140 characters in one Tweet which started a whole new movement called 'micro-blogging'. It is currently one of the top ten websites to visit on the Internet. This major corporation has decided that it will follow the footsteps of their biggest social media rival, Facebook by negotiating their IPO (Initial Public Offering) to be listed on the New York Stock Exchange. The speculation around the IPO is that Twitter is planning on listing at $1.5 billion.
As of now, there is no statement from the corporation or the exchange as to whether or not there will be a public offering. The story behind the IPO is said to be just a speculation as neither parties are aware of the situation and are not commenting on this matter as well. One of the exchanges that will be losing out a lot is the NASDAQ OMX Group as there was a problem in their trading system. This glitch froze trading of NASDAQ listed stocks for almost three hours. This figure is only a fraction of what Facebook had mobilized in their IPO where it reached close to $16bn. The number of shares that will be listed will range between 50 and 55 million with each share ranging between $28 to $30. This will definitely raise the market value of the San Francisco company from $15bn to $16bn.
A Lot of Anticipation
With such a speculation going around the ears of many people across the globe, there has been a lot of people who are looking forward to the IPO. This will be regarded as one of the most important debuts for a social media company since Facebook's IPO in May 2012. When the officials and representatives of Twitter were asked of the report that was conducted with regard to the IPO, it offered no comment. It is unsure as to when the IPO will finally be listed, but it is definitely going to be one of the most eager IPOs in recent history.
Companies that earn a revenue of less than $1billion can directly file for an IPO without having to make their records public under the JOBS Act (Jumpstart Our Business Startup). An E-marketer research firm believes that Twitter will generate close to $600 million in ad revenues this year and will earn up to $1 billion by next year. Twitter is also in talks with major investment banking firms JP Morgan and Morgan Stanley for a credit line that is estimated to be worth $500 million to $1 billion. This will all take place before the IPO will be made, to ensure that it does not flop like Facebook.