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Twitter IPO will value it at $11bn, despite no profits

25th Oct 13 9:24 am

Twitter is still yet to turn a profit and made a loss of $69m in the first six months of 2013.

But its revenues of $254m and more than 230 million monthly active users are still perceived to be of significant value anyway, as Twitter’s initial public offering (IPO) will value it at $11bn (£6.8bn).

Twitter’s filing with the Securities Exchange Commission on Thursday showed that it planned to sell 13% of the company, offering 80.5 million shares at $17-20 a share.

This should see the seven-year-old company raising up to $1.61bn when it floats in November.

Twitter could potentially have gone higher in share price.

Analysts were forecasting that Twitter could be valued at up to $15bn when news of the IPO broke earlier this month.

Twitter co-founder Jack Dorsey will decrease his shareholding from 4.9% to 4.3%.

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