Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
GET RECOGNIZED.
Let an ISACA® certification
elevate your career.

Register today and save
Enterprise I.T.
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
Is Twitter Really Ready To Go IPO?
Is Twitter Really Ready To Go IPO?

By Jennifer LeClaire
September 13, 2013 10:14AM

    Bookmark and Share
Twitter is now seven years old and has been in the red for most of its existence. Is now the time to go public? "It's maybe a little earlier than some people suspected. A lot of people suspected first quarter of next year," according to one analyst. On the upside for Twitter, we've seen a "terrific IPO market for technology-related companies this year."
 

Related Topics

Twitter
Facebook
IPO
Stock Market



Microblogging service Twitter is going IPO. The social networking site, which has more than 200 million members, has filed with the U.S. Securities and Exchange Commission (SEC) to make its debut on the public markets with an initial public offering. Some are calling it the most anticipated IPO since Facebook, but others still wonder if the timing is right.

"We've confidentially submitted an S-1 to the SEC for a planned IPO," Twitter tweeted. "This Tweet does not constitute an offer of any securities for sale."

Not surprisingly, the message went viral, getting retweeted more than 13,000 times even as analysts start to dissect what this means for Twitter and other social media networks.

What's Twitter Worth?

We asked Greg Sterling, principal analyst at Sterling Market Intelligence, for his reaction to Twitter going IPO. For starters, the way Twitter filed is telling.

Under the JOBS Act the microblogging service is permitted to confidentially file its S-1 if gross revenues are less than $1 billion. Twitter's revenues have been estimated to be roughly $600 million in 2013. And, Sterling noted, apparently the company was profitable in the fourth quarter of last year, although it may no longer be because of recent acquisitions.

"Given Facebook's recovery and the story that Twitter can tell the marketplace, I suspect demand for Twitter's offering will be heavy. It will likely seek considerably more than the $1 billion in VC funds that have been invested in the company over the past six years," Sterling said.

"Twitter's shares have been bought and sold on the private market for some time with the current value of the company being somewhere north of $9 or so billion," he said. "The IPO should push Twitter's market cap up well beyond that."

Learning from Facebook

Twitter is now seven years old and has been in the red for most of its existence. Is now the time to go public?

"It's maybe a little earlier than some people suspected. A lot of people suspected first quarter of next year," Carter Mack, president of JMP Group Inc., a San Francisco investment banking and asset management firm, told the Wall Street Journal. "It's been a terrific IPO market for technology-related companies this year."

That said, Facebook felt the pressuring of going IPO before, during and after the process and had some very high profile struggles with early earnings reports. Can Dick Costolo, Twitter's CEO, who has led the company for the past three years, handle what comes next?

"Twitter is ready. Investors are ready. The fact we're having this discussion is testament to the tweet that validates the platform as a credible new medium," said Marcus Nelson, CEO and founder of Addvocate, which helps companies humanize their brand experiences by enabling all employees to engage with customers.

"Furthermore, Facebook's recent market accomplishments ushers the way for a successful Twitter IPO," he said. "Twitter can learn from Facebook and set the pace for another crop of successful tech IPOs."
 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Enterprise I.T.
1.   Teaming Up: CIOs, IT Asset Managers
2.   Juniper DDoS for High-IQ Networks
3.   IBM Rolls Out Hybrid Cloud Services
4.   Backlash Stirs Against H-1B Visas
5.   Windows 7 Ends Mainstream Support


advertisement
Backlash Stirs Against H-1B Visas
Debate over foreign workers continues.
Average Rating:
IBM Rolls Out Hybrid Cloud Services
Based on SoftLayer net infrastructure.
Average Rating:
Windows 7 Ends Mainstream Support
But extended support still available.
Average Rating:


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Juniper DDoS Solution Aims at High-IQ Networks
In the face of more complex attacks, Juniper Networks is boosting its DDoS Secure solution to help companies mitigate the threats with more effective security intelligence throughout the network fabric.
 
Large-Volume DDoS Attacks Hit Record in 2014
The number of distributed denial-of-service (DDoS) attacks set a record in the first half of 2014, according to a report by Arbor Networks. The number of attacks over 20 GB/sec doubled.
 
U.N.: Nations Hide Rise in Private Digital Snooping
Governments on every continent are hiding an increasing reliance on private companies to snoop on citizens' digital lives, the U.N. human rights office says, with grave concerns about privacy.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.