Categorized | IPO

Twitter Files For IPO…Finally!

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Last Thursday, as individuals on the east coast began to call it a day, Twitter announced to the world that they filed for IPO. In their signature way, the mini-blog site “tweeted” their company’s decision to go public 5 o’clock on September 12th. This seven year old company has become the pulse and platform for breaking news offering both users and companies the ability to establish a connection with others. Reshaping the perception of our digital connections Twitter has been one of the most highly anticipated IPO launches in the last few years. Now as Twitter and company continue to go through the filing process many investors and analysts are on the edge of their seats to see what their outcome will be.

In The News: Twitter Files For IPO

In the recent months we have featured Twitter quite frequently, discussing why they are so anticipated in addition to speculating the limited character posting platform. With SEC’s new law, the JOBS Act, Twitter was able to file to go public confidentially, which protects them from divulging certain pieces of information at this time. We’ll get into more of that shortly, let’s see take a look at what made this the perfect time for Twitter to begin.

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Twitter’s ultimate goal is to become the number one platform to be utilized by regular individuals as well as high-impact influencers within society. With individuals like the former Pope and Lady Gaga growing immense fan bases within their Twitter profiles, it gives their followers a connection that was impossible to obtain a mere decade ago. There are currently more than 200 million dedicated users, with over 400 million tweets being sent each day. In recent months, Twitter’s popularity soared when news of the NSA’s surveillance over social media platforms and tech companies like Facebook, Google, and Apple did not include the tweeting phenomenon.

There are many analysts who are already speculating that Twitter Inc.’s IPO will be one of the highest profile IPOs since Facebook hit Wall Street. Let’s see what we know about Twitter files for IPO so far!

Most Anticipated IPO Finally Begins IPO Process

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As we mentioned before the JOBS Act protected Twitter’s IPO filing, allowing them to keep certain variables like how fast it is currently growing, it’s profitability, or current executive compensation. While Twitter recently launched “Promoted Tweets” which are basically their advertising platform gaining them approximately $539 million in revenue, they were still protected under the JOBS Act. Any small company whose annual revenue is below $1 billion can file accordingly keeping their IPO documents private.

Though Twitter insiders have admitted to other banks becoming involved in the IPO process later on, the Goldman Sachs Group Inc. has been chosen to be the lead underwriter for Twitter’s file for IPO. While Twitter’s announcement sparked excitement everywhere, many investors and analysts are more anxious than ever looking for the answers to their questions.

What Is Everyone Wondering About the Twitter IPO?

There are two main factors that everyone is wondering after hearing Twitter files for IPO. As always the first would be the initial valuation. Fellow social media giants were valued at $100 billion prior to going public, which many felt was way too high. With analysts all trying their hand at getting the closest to the actual value, many expect it to fall between $9 and $15 billion. Since 2007 when Twitter launched, they have raised over $1 billion in private funding, producing amazing results with their ad revenue with even bigger jaw-dropping projections to follow.

The second most important question everyone is asking is, “When will they actually go public??”

When Will Twitter Go Public?

While Twitter is just starting their process, there is no strict schedule that they have to follow. Many investors feel as though they shouldn’t hesitate too long, as many tech IPOs that have recently launched have usually been welcomed to Wall Street with a 13% gain in the first few days. Those numbers may or may not matter to Twitter’s CEO Dick Costolo, who has led the Twitter company for the last three years, holding his ground when requests to go public came flooding in a year ago. He saw Twitter’s potential and did not want to have this phenomenal platform at the mercy of public investors and shareholders too early into their development.

As usual, we will just have to wait and see what the future holds for this highly anticipated tech company. Will their company’s stock soar upon going public? Or will it flop?

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