Twitter rumors confirmed, IPO coming
On Thursday, Twitter (NYSE:TWTR) , a social media giant that has made its way into virtually every aspect of society, announced it would be hitting the public markets in the near future. The company submitted a confidential filing for an initial public offering with the SEC. Twitter decided to reveal this news in a tweet on the company’s official account. This news sets into motion one of the most anticipated initial public offerings in tech history.
Twitter was seen preparing the IPO into motion last year when it completed a number of acquisitions to centralize its power over the distribution of tweets. Up to this point Twitter has remained the only large social media company to avoid the public markets. Other big media companies, including Linkedin (NYSE:LNKD) and Facebook (NASDAQ:FB) , have already commanded billions of dollars of value in the public markets. Linkedin is worth $32 billion in stock while Facebook’s market value is an incredible $108 billion.
Following the Facebook initial public offering, companies have been cautious and have waited for the right time to hit public markets. Fears of profitable have made waves within the sector, thus, Twitter must prove it has the potential to generate significant revenues. Twitter has selected the world leader in investment banking, Goldman Sachs (NYSE:GS) , to lead the high profile IPO. After Morgan Stanley (NYSE:MS) had difficulty with Facebook’s IPO, some analysts have speculated Twitter was trying to choose I stronger partner. Demand for the IPO is set to be as high as ever, it is expected the company will save at least 20% of its offering for its retail investor base. However, it is unclear what valuations will be used to generate the offering price. Until then, start calling your brokers if you want shares. Typically high profile IPOs have been saved for top clients and high net worth individuals. But who knows, maybe your broker will save some shares for the small guy.
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