Posted on
September 13th, 2013

Twitter planning to join the stock market

Twitter has announced that it plans to join the stock market in what is considered to be the most keenly anticipated flotation since Facebook joined in 2012.

In reference to the official documentation required to join the stock market, the company tweeted “We’ve confidentially submitted an S-1 to the SEC for a planned [initial public offering].” No further details were given in relation to the pricing or the timing of the offering.

Following the paperwork being filed with the US regulators, a company enters what is known as a “quiet period”, when speaking to the press is not allowed.

It is rumoured that the timing of the initial public offering has to do with the desire of the company to grow further, along with its desire to reward investors who are believed to have put over $1bn in to the company.

Andrew Frank, social media expert at Gartner said “For one thing it gives its investors a way to get some of the money back that they put into the company at the beginning.

“It gives the employees a similar kind of event to reward them for the success they’ve had so far and it gives Twitter itself extra funds to invest in new projects and innovation. It also gives it the status of having a position on the stock exchange, which of course puts the firm in a different league to a start-up.”

Founded in 2006 by Jack Dorsey, Biz Stone and Evan Williams, investors have valued Twitter at more than $10bn (£6.3bn) and according to the advertising consultancy eMarketer, it is on track to post revenue of $583m (£367m) in 2013.

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