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Summary:

Twitter has finally announced that it will go public via a tweet that went out after markets closed on Thursday.

twitter money advertising revenue income bird generic
photo: GigaOM

Twitter has announced its long-awaited IPO in, what else, a tweet that came after market closed on Thursday:

Twitter’s note that this is a confidential filing means the company’s annual revenue is less than $1 billion. Usually when companies announce plans to go public, they have to file an S-1, the securities filing that companies use to provide details about their planned initial public offerings. Under the JOBS act of 2012, however, companies with less than $1 billion in revenue can file confidentially.

Sources familiar with Twitter’s thinking tell us the company has recently received bids from hedge funds offering to buy shares in the company from employees and investors for between $26 and $28 a share, which would value Twitter at $14 billion. The company has raised just under $1 billion in funding over the last several years as it has grown into one of the most ubiquitous fast-twitch communication networks of our time.

Until now, Twitter’s stock has been trading on the secondary market for between $18 to $22 a share, according to a source.

Twitter’s public offering, which is likely to take place in early 2014, will among the most high profile IPO’s since Facebook went public in May of 2012.

The company has evolved rapidly in the last two years, transforming itself from a “micro-blog” into a media behemoth whose partners include the likes of NBC, the NFL and major studios.

Twitter, which began in San Francisco in 2006, is also in a strong position in the advertising market since, from its inception, it has been built to serve two major trends: social networks and mobile communications. The company’s ad position grew even stronger this week on news that it acquired MoPub, which is the world’s biggest exchange for mobile advertising.

Twitter’s CEO is Dick Costolo, the company’s former Chief Operating Officer, but founder Jack Dorsey (who is speaking at our RoadMap conference in November) remains involved in the company; Dorsey rejoined Twitter as chairman in 2011 after a several year absence.

(More soon. This post has been updated multiple times as more information became available.)

  1. Just some random guy Thursday, September 12, 2013

    “Facebook went public in 2014″

    How are they trading on the NASDAQ then?

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    1. Hazards of working quickly. That’s fixed.

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  2. Not really a hedge fund MO to buy twitter. If they’re buying outright, they’re more LBO/private equity. But not the LBO MO to buy a growth company, as opposed to a mature cash cow or turnaround.

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    1. That was an editing error on my part, wrote down the wrong thing in taking dictation. It’s fixed.

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  3. Your URL says “twitter-files-papers-to-go-public-at-less-than-1-billion-valuation” but it should be “twitter-files-papers-to-go-public-at-less-than-1-billion-revenue”

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    1. The original headline was a typo, and the URL is set after it publishes. The correct headline is now atop the story.

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  4. Wrong: …joined Twitter as chairman in 2011 after a several year absence.

    Thanks,
    -Grammer Nazi

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    1. wow. s/Grammer/Grammar/

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  5. Twitter going IPO very late, thats my opinion! :-)

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  6. want it

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