Tags: twitter | billion | ipo

Twitter Files for $1B IPO

Thursday, 03 Oct 2013 06:11 PM


  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink

Twitter Inc. didn’t need more than 140 characters to tell the world it was going public. With today’s regulatory filing, it became an #openbook.

In what is the most anticipated technology company offering since Facebook Inc., San Francisco-based Twitter made public its S-1 prospectus today and said it is seeking to raise $1 billion in its initial share sale. The company didn’t specify the number or price of shares it will offer, using the $1 billion as a placeholder to calculate registration fees.

Editor's Note: Weird Trick Adds $1,000 to Your Social Security Checks  

The document also showed Twitter is more than doubling revenue annually, even as it remains unprofitable. Goldman Sachs Group Inc. was listed as the lead underwriter, along with Morgan Stanley, JP Morgan Chase & Co., Bank of America Corp. Deutsche Bank AG, Allen & Co. and Code Advisors.

The prospectus removes the veil of secrecy that surrounded Twitter’s financials since the company said on Sept. 12 it had filed confidentially for an initial public offering. It underlines how the microblogging service, founded in 2006, has evolved from a simple site for 140-character updates to a booming online-advertising business that generated more than $253.6 million in the first six months of this year.

“It’s a hot area,” said Francis Gaskins, president of IPOdesktop.com, who added that Twitter’s broad appeal will make the share sale one of the most watched in recent history. “People understand this and they use it.”

Roadshow Soon

With Twitter taking the wraps off its S-1, the company will soon embark on a roadshow to market to investors. The IPO will test a market that has been burned in recent years by the offerings of Internet companies such as Facebook, Groupon Inc. and Zynga Inc., all of which plunged below their offering prices within six months of going public. While Facebook shares have since climbed back, Groupon and Zynga are still trading below their IPO prices.

The offering will be pivotal for Chief Executive Officer Dick Costolo, who in 2010 became Twitter’s third CEO in as many years. He is credited with bringing management discipline, rapid hiring and a business plan to a company that was bogged down by a lack of focus and frequent technical outages.

Twitter’s S-1 showed that revenue in the first six months of the year was $253.6 million, up from $122.4 million in the first six months of 2012. It said advertising revenue per timeline view in the three months ending in June was 80 cents, up 26 percent from the same period a year ago.

Editor's Note: Weird Trick Adds $1,000 to Your Social Security Checks  

Twitter posted a net loss of $69.3 million in the first six months of 2013, compared with a net loss of $49.1 million in the same period a year ago.

“The principal purposes of this offering are to increase our capitalization and financial flexibility, create a public market for our common stock and enable access to the public equity markets for us and our stockholders,” Twitter said in its prospectus.

© Copyright 2014 Bloomberg News. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Retype Email:
Zip Code:
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Obama Signs Law Aimed at Barring Iran UN Envoy

Friday, 18 Apr 2014 16:37 PM

President Barack Obama on Friday signed into law a bill barring US visas for UN envoys seen as a threat to American secu . . .

Edward Snowden: I'm Not Putin's Patsy

Friday, 18 Apr 2014 15:46 PM

National Security Agency Leaker Edward Snowden says that people shouldn't be surprised that he asked Russian President V . . .

Franklin Graham: Persecution of Christians Occurs Abroad and in US

Friday, 18 Apr 2014 15:16 PM

Christians are under attack not just abroad, but also here in the U.S., says Franklin Graham. . . .

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved