Twitter, formerly known as Twttr sent its first tweet from co-founder Jack Dorsey in 2006. From that time, Dorsey could never had imagined the flight his little blue bird would endure. With over 200 million active users, Twitter is a gasping feeding ground for items like ads. A move that will soon arrive as Twitter has confirmed the social media giant will go public and hit the stock market.
Of course, the move to shift the company to a public format may not had been the company’s ideal situation. The Jobs Act of 2012 regulates that any company in the United States that acquires over 2,000 private investors must go public. Twitter joins other social media competitors Facebook and LinkedIn who have succumbed to investors and joined the game of Wall Street.
Interestingly enough, Twitter brings with it a great value but overall the revenue for the tweet machine is under $1 billion. The company is worth much more than that, stated an investor. It is predicted Twitter has an estimated worth of a minimum $10 billion. This is of course expected to explode with the introduction of ads, once the company becomes public. Twitter predicted its success early on, focusing on becoming compatible on mobile devices; hence the 140-character message max.
With the shift across the globe to mobile devices, advertisers can touch on a greater amount of users on the go. Those same users accessing their Twitter on their mobile device may not be too keen on the idea of seeing advertising banners on their device. Twitter is still working to collaborate and finalize a business model to roll-out that will appease investors and users alike.
Twitter has been plucking the checkbook out lately in anticipation of going public. The company has snatched up MoPub an advertising company that caters to mobile ads, Trendrr the social media analytics company and Bluefin Labs which would allow subscribers to tweet regarding their favorite television and entertainment programs.
Many investors and shareholders are still feeling a bit bruised from Facebook’s lackluster IPO appeal last May. Facing NASDAQ glitches on its first day lead to Facebook underwriters struggling to purchase bulk stock to save face. The initial Facebook IPO price of $38 per share was considered over-priced or was it? Facebook has weathered the worst and is coming up smelling like roses. The company is certainly sitting back, pretty smug. Their shares have increased 15-percent since their IPO release date, signifying success from disaster.
Unnamed sources close to Twitter state the social media giant will not be as bold per share cost once it debuts on the stock market. There seems to be a flurry of activity but very little is being said about the cost per share. The stakes for Twitter increases as competition to keep investors will remain significantly high. The company will have to develop innovative ideas to keep their advertisers and users happy.
The lead underwriter in the IPO will be none other than Goldman Sachs. Rumors suggest the company will not go public until sometime in early 2014. Twitter can see spectacular growth if they play their cards correctly. The social media icon has developed a home and heart in the mobile device world over desktop accessibility. It will be an interesting year to see the path developed for user ease and advertiser savvy appeal. Twitter is going public and speculation is already growing, predicting Twitter will exceed expectations over competitor, Facebook.
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