Home Business NewsTech News Twitter announces plans for $10bn float via a tweet

Twitter announces plans for $10bn float via a tweet

by LLB Editor
13th Sep 13 8:54 am

Twitter yesterday announced its intention to float on its own Twitter feed. It tweeted that it has filed preparatory documents to the Securities and Exchange Commission.

“We’ve confidentially submitted an S1 to the SEC for a planned IPO. This Tweet does not constitute an offer of any securities for sale,” tweeted the web giant.

The Wall Street Journal has estimated the company would be worth as much as $10bn (£6.3bn) and the IPO is expected in the first quarter of 2014.

According to the FT, Silicon Valley analysts predict that Twitter might be valued as high as $15bn at its IPO. Its three founders, Evan Williams, Biz Stone, and Jack Dorsey, are expected to get a windfall worth hundreds of millions of dollars each.

Goldman Sachs has been appointed as lead underwriter in the IPO.

Twitter’s revenues for last year have been estimated to top $350m. It is expected to earn $582.8m (£390m) in advertising revenues this year. Industry tracker eMarketer suggests that the social media giant will earn nearly $1bn (£670m) next year.

Founded in 2006, the San Francisco-based social network has around 200 million users worldwide, including 10 million active users in the UK.

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