Twitter set for stock market debut after filing for IPO
Social media giant will be hoping to avoid the pitfalls of Facebook's disastrous stock market listing
TWITTER has announced it has filed paperwork with US regulators ahead of a planned stock market flotation. The social media network aptly revealed the news in a tweet.
"We've confidentially submitted an S-1 [the initial registration form] to the SEC for a planned IPO," Twitter announced on its official feed, which was retweeted more than 8,000 times within the hour.
Analysts value the company, which is on track to post $583 million (£368.7m) in revenue this year, at around $10bn (£6.3bn).
Andrew Frank, social media expert at tech advisors Gartner, said the float was a way to reward investors who put $1bn (£752.4m) into the company at the start. "It also gives it the status of having a position on the stock exchange, which of course puts the firm in a different league to a start-up," he said.
Twitter, which currently has 500 million users, was founded in 2006 by entrepreneurs Jack Dorsey, Biz Stone and Evan Williams, who are set to make millions from the float.
The stock offering is the most hotly anticipated since Facebook listed its shares last year, reports the BBC. After the difficulties faced by Mark Zuckerberg's company, Twitter will be hoping to avoid a similar crash in status.
After a promising start when it first listed on the stock market, Facebook's share prices fell drastically, before recovering this summer. The social media giant initially struggled with generating extra ad revenues, as an increasing number of people switched to using the site on their mobile phones.
However, Clark Fredriksen of eMarketer told the BBC, that Twitter was more or less a mobile-first platform from the start. "The company built its experience to work relatively well across devices," he said. "Ultimately, they did a good job of monetising their mobile user base."
Earlier this week, Twitter announced that as part of its continued push to boost advertising it had acquired MoPub, a mobile-focused advertising exchange, for a reported $350m (£221.8m). ·