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Twitter Plans Stock Market Listing

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http://www.bbc.co.uk/news/business-24075010

Twitter says it plans to join the stock market in the most hotly anticipated flotation since Facebook's last year.

Referring to the official paperwork needed to join the market, the company tweeted: "We've confidentially submitted an S-1 to the SEC for a planned [initial public offering]."

Investors value Twitter, founded in 2006 by Jack Dorsey, Biz Stone and Evan Williams, at more than $10bn (£6.3bn).

Twitter gave no further details as to the timing or price of the offering.

The microblogging service is on track to post $583m in revenue in 2013, according to advertising consultancy eMarketer, up from $288m in 2012.

Most of Twitter's funding comes from advertising, with companies paying for "promoted tweets" that appear in users' Twitter feeds.

Advertisers are keen to target Twitter's 200 million active users, who send more than 500 million tweets a day.

So aiming for a float of around $10bn based on people writing 140 characters is worth this?

Will the celebs on the site start wanting payment from the ads which get served up to their followers?

Facebook has managed to recover it's price to it's initial IPO offering price so Twitter should be able to sell the shares in the market.

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Also online and much more on-topic for HPC, it's reported that zoopla is considering a stockmarket flotation.

Apparently it's risen to about 50% of Rightmove's turnover, though direct traffic to the website is just one element of that. Rightmove's current stockmarket valuation is just over £2.4 billion.

As a Venture Capital investor I've already made good money from Zoopla, and look forward to more if it floats successfully. There's still an opportunity - albeit now much-diluted - to get in on the act.

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If they could monetize the users and the time they spend on twitter, then it would be a very profitable company. If I was forced to invest in either twitter or facebook, I would choose twitter.

However, I have no idea what the long term holds for social media, so I'll pass on that opportunity.

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http://www.bbc.co.uk/news/business-24075010

So aiming for a float of around $10bn based on people writing 140 characters is worth this?

Will the celebs on the site start wanting payment from the ads which get served up to their followers?

Facebook has managed to recover it's price to it's initial IPO offering price so Twitter should be able to sell the shares in the market.

Early in the article

Twitter gave no further details as to the timing or price of the offering. The microblogging service is on track to post $583m in revenue in 2013, according to advertising consultancy eMarketer, up from $288m in 2012"

Further down

Nearly two-thirds of users access Twitter via mobile devices that have traditionally been difficult for advertisers to reach. This is one reason why Twitter has acquired MoPub, a mobile-focused advertising exchange, for a reported $350m

I'm not sure what their profit margins are like but the revenue figures are relatively small but growing fast (They have 200mn users and $583mn revenue, ? profits), yet they spend $350mn on an acquisition. I guess this must come be private capital so no wonder they have to float, and fast!

I'm not sure where $10bn comes from?

Edited by Ash4781

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