MICROBLOGGING SOCIAL NETWORK Twitter has filed for an initial public offering (IPO).
The firm revealed its plans on Twitter in 140 characters or less. "We've confidentially submitted an S-1 to the SEC for a planned IPO," it said. "This tweet does not constitute an offer of any securities for sale."
Such "emerging growth companies" like Twitter are allowed to file confidentially if yearly revenue is less than $1bn. Because of the confidentiality we don't know what value Twitter placed on its business in the filing, but we do know that its revenues must be coming in short of $1bn.
Twitter will have to release more detailed numbers regarding its financials as it gets close to the IPO, and is likely to do 21 days before the event.
Twitter's IPO probably will attract as much attention as Facebook's, but Twitter will hope that it has more traction. Facebook was expected to be a swaggering money maker, but it has not quite delivered on that. Its share price is up from the launch price, but it hasn't been a easy ride.
According to the Wall Street Journal Goldman Sachs is lined up to represent Twitter. The WSJ guessed that the firm is probably worth $10bn, and added that Facebook's IPO had a $100bn price tag.
Twitter launched seven years ago, and it is thought to have users numbered in the hundreds of millions. Last week it splashed out an undisclosed sum - some reports estimated it was $350m - on an advertising business called Mopub. µ
Tags: Social Media
Sign up for INQbot – a weekly roundup of the best from the INQ