Tag Archives: Twitter IPO

Twitter to announce its IPO

Twitter is in the process of announcing its IPO. The major concern for Twitter executives is that they will repeat what Facebook did in announcing their IPO. For those unfamiliar, Twitter is a social media website in which members can post a short message on whatever topic of interest they may have. The site has garnered 200 million monthly users and continues to grow.

Recently, Twitter has purchased MoPub for $350 million. They are a mobile advertising firm which sells ads across various different vehicles. This is good for twitters current revenue stream coming in at $583 million this year in E-marketing as there will now be additional revenue from their sub company. Analysts project that by next year Twitters revenue will be just shy of a billion dollars. The company shows lots of promise in its growth and the projects it takes on.

To avoid repeating what Facebook did in their IPO, Twitter has joined forces with large banks such as Goldman Sachs, Bank of America, Deutsh Bank and JP Morgan. They are working hand in hand to create a strategy that won’t diminish the value of the shares. They don’t want to overprice their shares like Facebook did, so they are looking to follow the model of companies like Linkedin Corp and Workday Inc who had successful debuts.

Twitter’s major concern is to retain its customer base by not changing the platform of their social media application to just another advertisement. The company only has 3 ways of advertising versus Facebook who has a plethora of different methods. This can be daunting to the user and is creating a disingenuous experience. Mark Zuckerberg made it clear when he initially created Facebook that it should be used solely for social interaction and not as a means of advertising. That is why Twitter executives are so concerned with maintaining their customer base and their company image.