Home > Finance, Social Media > Twitter Reveals $1 Billion IPO Plan

Twitter Reveals $1 Billion IPO Plan

Friday, October 4th, 2013 Leave a comment Go to comments

Twitter is looking to raise $1 billion in its IPO, the company disclosed yesterday, saying it will trade under the TWTR ticker symbol. The company’s S-1 filing implied it will have a market cap of $12.8 billion despite an H1 net loss of $69.5 million. Revenues more than doubled to $253.6 million, although expenses surged 87% to $316.5 million. One possible concern is that Twitter’s “average cost per ad engagement” – i.e. ad prices – has been steadily falling.

 

WSJ_Twitter rev-OG-AA237_TWITTE_E_20131003175326

 

According to Twitter’s S-1, Twitter differs from other internet companies in its governance structure. Specifically, Bloomberg notes that:

Unlike the boards of Facebook, Linkedin Corp and Google Inc., which created multiple classes of stock to give extra voting power to their founders, Twitter has just one class.

“Here you have a company that is probably going to be more democratic than some of those other businesses may be,” said Charley Moore, founder of Rocket Lawyer Inc., a startup that provides legal service for customers, including Twitter employees. “They don’t have any special rights for their major shareholders.”

 

Here’s a chart that highlights how Twitter stacks up against Facebook, Google, LinkedIn, and other tech companies when they filed for an IPO:

 

WSJ_Twitter-MK-CG795_TWITTE_G_20131003183305

 

Source: WSJ

 

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