Twitter files for public offering

Twitter has submitted an S-1 with the U.S. Securities and Exchange Commission, otherwise known as the SEC, for a planned initial public offering. That's right, Twitter is finally stepping out of the darkness and is going public.

The social network announced the news at 5 p.m. Eastern time in, appropriately, a tweet.

The company is expected to have a valuation between $15 billion and $20 billion. Twitter has yet to release any other information outside of the tweet, so initial trading price and IPO date are currently unknown. Figures like profit and revenue ought to come out soon. A full leak of the filing would be a juicy treat as well.

Twitter CEO Dick Costolo has in the past indicated a lack of concern or enthusiasm over the concept of going public. Now that Twitter has plenty of capital after being private and in need of funding for so long, now is the time for an IPO to earn back that money. Hopefully Twitter won't suffer the same fate as Facebook, which went public last year at $38 per share and after a bumpy road has since only grown to $45 per share.

Source: Twitter via TechCrunch | Image via Twitter

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15 Comments

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Personally I don't see how Twitter could be worth that at all. To me, it's based a lot on speculation and hyped-hype rather than a solid foundation. Additionally, from what I've seen, most of what people post is pointless garbage anyway, so really, where is the value here?

A 140 character message service worth $15-20 billion? Tell 'em he's dreamin'...

I guess the guys who made it just want to cash in on what they have made.
Makes sense if you know you'll have enough money to live well for the rest of your life.

SirJimmyOfRussell said,
Obviously going short of cash.

I am curious: do you think that companies go public because they are short of cash?

Fritzly said,

I am curious: do you think that companies go public because they are short of cash?

It's the top reason companies go public

SirJimmyOfRussell said,

It's the top reason companies go public


I am afraid you are confusing "short of cash" with the " of cash" .

Fritzly said,

I am afraid you are confusing "short of cash" with the " of cash" .

Do a bit more reading regarding Twitter and their situation.

SirJimmyOfRussell said,

Do a bit more reading regarding Twitter and their situation.

I read Neowin as well as FT every morning......

SirJimmyOfRussell said,

Do a bit more reading regarding Twitter and their situation.

So you're aware of their secret filing, their estimated revenue and how much this IPO should raise. It's easy cash raising for them to invest in their advertising platform. If they had substantial reserves they'd just use them instead.

Not necessarily. Everyone knew that Facebook was artificially inflated. I don't know what Twitter's valuation is, but if it is reasonable there is no reason to think it will drop like Facebook did.