Twitter set to go public, files for IPO
Washington: Microblogging website, Twitter Inc. is all set to go public as it has reportedly filed for an initial public offering (IPO) with the US regulators.
Twitter’s IPO is speculated to be Silicon Valley’s most anticipated debut since rival social media network Facebook Inc. went public last year.
The microblogging site filed for an IPO confidentially under a 2012 law intended to help emerging corporations with less than 1 billion dollars in revenue go public.
Companies that file under that law do not have to reveal certain details until 21 days before embarking on an investor roadshow.
According to Fox News, Twitter’s debut could generate tens of millions of dollars in fees from the underwriting mandate itself.
An advertising consultancy eMarketer said that Twitter, which has been valued by private investors at more than 10 billion dollars, is on track to post 583 million dollars in revenue in 2013.
Max Wolff of Greencrest Capital estimated that the site would reach break-even this year, and that it is on track for 40 percent annual growth at a 1 billion dollars annual revenue run rate.
Wolff further said that Twitter has completely conquered mobile and is becoming a key utility as a second screen to TV and it''s literally the first draft of history adding that normally a company like Twitter would have been public for some time, the report added.