In A Tweet, Twitter Announces IPO
Posted: September 16, 2013 by Alex Chan
After years of speculation, the social networking site Twitter finally revealed on Thursday that they are filling for an IPO. The announcement, of course, came in a tweet.
According to the statement, they had already filed paperwork with the U.S Securities and Exchange Commission (SEC) making their first step toward the much-anticipated initial public offering. Even though the IPO was filed confidentially, (the law allows companies with less than $1 billion revenue in its last financial year to do so) Twitter quickly made its intentions public, naturally, via tweet.
Much like Facebook, Twitter's bosses were forced by the Jobs Act which requires a U.S firm to file an IPO once they reached 2,000 investors. As the law requires, Twitter's financial statements, and other sensitive information, contained in the IPO filing must become publicly available at least three weeks before company's executives start traveling across the country to meet with potential investors – a process known as the 'road show'.
This is a great move for Twitter's co-founders, Jack Dorsey, Evan Williams, Biz Stone, and their collective wealth, which is expected to surge from their estimated $3 billion to more than four times that. With more than 200 million users worldwide, Twitter is expected to debut at a valuation of between $14 billion and $20 billion. The company, which was founded in March 2006, but has become one of the world's most popular social networking sites over the past seven years, has been building up its advertising products and working to boost ad revenue in preparation.