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

Mission’s Norm MacLeod is in Peru to train firefighters

It is the 10th time that the assistant fire chief has volunteered to attend and teach these sessions

Silverdale students study gym-sized map of the Indigenous Peoples of Canada

The map is one of only five in existence across Canada and is the only one in B.C.

Former Mission educator receives national Indigenous role model award

Kimberly Sommer, now in Abbotsford, went to Edmonton last week to receive the Indspire role model award

Friends describe murder victim as ‘most caring guy we knew’

Jagvir Malhi of Abbotsford was not involved in gangs or criminal activity, they say

Ten-year sentence for man convicted of belt-strangling death in Abbotsford

Shayne McGenn guilty of manslaughter in 2016 death of David Delaney, 63

Trudeau offers to help Pacific islands face climate change impact

Prime Minister Justin Trudeau met with the leaders from the Pacific island nations on Saturday during the APEC Summit in Papua New Guinea

BC Minister of Agriculture loses stepson to accidental overdose

Lana Popham announces death of her 23-year-old stepson, Dan Sealey

Canadian military’s template for perfect recruits outdated: Vance

Gen. Jonathan Vance, the chief of defence staff says that the military has to change because the very nature of warfare is changing, particularly when it comes to cyber-warfare

‘Toxic’ chosen as the Word of the Year by Oxford Dictionaries

Other top contenders for 2018 include ‘gaslighting’ and ‘techlash’

RCMP bust illegal B.C. cannabis lab

Marijuana may be legal but altering it using chemicals violates the Cannabis Act

1 woman dead, man in hospital after ‘suspicious’ crash: police

Homicide investigators and Burnaby RCMP are investigating the fatal collision

Canada defeats Germany 29-10 in repechage, moves step closer to Rugby World Cup

Hong Kong needs a bonus-point win over Canada — scoring four or more tries — while denying the Canadians a bonus point

Avalanche Canada in desperate need of funding

The organization provides avalanche forecasting for an area larger than the United Kingdom

5 B.C. cities break temperature records

Parts of B.C. remain warm, at 10 C, while others feeling chilly

Most Read