News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
GET RECOGNIZED
Let an ISACA® certification elevate your career.
Register today and save
You are here: Home / Enterprise I.T. / Is Twitter Really Ready To Go IPO?
DDoS Protection Powered By Verisign
Is Twitter Really Ready To Go IPO?
Is Twitter Really Ready To Go IPO?
By Jennifer LeClaire / NewsFactor Network Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
SEPTEMBER
13
2013


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."

Read more on: Twitter, Facebook, IPO, Stock Market
Tell Us What You Think
Comment:

Name:

Like Us on FacebookFollow Us on Twitter
TOP STORIES NOW
MAY BE OF INTEREST
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.
MORE IN ENTERPRISE I.T.
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Dairy Queen Latest Retailer To Report Hack
Dairy Queen is known for its hot fries and sweet treats, but it just made cyber history as the latest victim of a hack attack. The fast food chain said that customer data at some stores may be at risk.
 
Lessons from the JPMorgan Chase Cyberattack
JPMorgan Chase is investigating a likely cyberattack. The banking giant is cooperating with law enforcement, including the FBI, to understand what data hackers may have obtained.
 
Who Is the Hacker Group Lizard Squad?
Are they dangerous or just obnoxious? That’s what many are wondering about the hacker group Lizard Squad, which tweeted out a bomb threat that grounded a flight with a Sony exec aboard.
 

Enterprise Hardware Spotlight
HP Previews ProLiant Gen9 Servers
Because traditional data center and server architectures are “constraints” on businesses, HP is releasing new servers aimed at faster, simpler and more cost-effective delivery of computing services.
 
Apple Set To Release Largest iPad Ever
Tech giant Apple seems to have adopted the mantra “go big or go home.” The company is planning to introduce its largest iPad ever: a 12.9-inch behemoth that will dwarf its largest existing models.
 
Alert: HP Recalls 5 Million Notebook AC Power Cords
HP is recalling about 5.6 million notebook computer AC power cords in the U.S. and another 446,700 in Canada because of possible overheating, which can pose a fire and burn hazard.
 

Mobile Technology Spotlight
Apple Sets Sept. 9 Event: iPhone 6, iWatch on Tap?
Save the date. Apple formally announced that its long-anticipated “special event," will take place on September 9. Does the tech giant have the iPhone 6, and the iWatch up its sleeve?
 
Samsung's New Smart Watch Makes Calls Without Phone
Following up on the Gear 2, Samsung has unveiled a new 3G smart watch, the Gear S, that stands out in its ability to make phone calls and send text messages without a smartphone.
 
Apple Set To Release Largest iPad Ever
Tech giant Apple seems to have adopted the mantra “go big or go home.” The company is planning to introduce its largest iPad ever: a 12.9-inch behemoth that will dwarf its largest existing models.
 

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 | CRM Systems | 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.