Twitter announced on the 13th of September via a Tweet that it has filed for their Initial Public Offering (IPO) with the Securities and Exchange Commission (SEC).
Twitter took advantage of the US legislation passed last year, that allows companies with less than $US1 billion ($1.1 billion) in revenue in its last fiscal year to avoid submitting public IPO documents. However the fact that it is filing confidentially implies that its annual revenues have not yet reached $US1 billion.
Twitter, which has been valued by private investors at more than $US10 billion ($10.8 billion), is on track to post $US583 million ($629 million) in revenue in 2013 (Sydney Morning Herald 2013).
Twitter is the last of the big social networks to go public. In the social networking ecosystem, Twitter is seen as a must have in terms of a social strategy, and is the only major player left that is still up for grabs as YouTube is owned by Google, LinkedIn & Facebook (IPO) are all spoken for. Other up-comers like Pinterest are still babies in social media and getting started, therefore Twitter is going to be the talk of the town into 2014.
This news from Twitter does come as a surprise as many thought that Twitter wouldn’t file for IPO so soon. Twitter becoming public, provides a way to learn more about the Twitter business both financially (revenue compared to other networks, values & numbers) as well as to hearing the Twitter story.
Twitter has become one of the fastest-growing and most influential social media services, used widely by celebrities, journalists and others with a reported 200 million active users, a figure that’s suspected to be much higher.
What do you think about Twitter going public? Should they have or should they have held out a little longer?