Twitter IPO talk resurfaces amid Wall Street chats

Twitter IPO talk resurfaces amid Wall Street chats

Summary: Currently valued at US$10 billion, the microblogging site reportedly held preliminary discussions with banks ahead of a selection process for underwriters to lead its much-anticipated IPO.

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Talks of a Twitter IPO have resurfaced after reports indicate the microblogging service provider held informal discussions with Wall Street firms and banks. 

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According to a NY Post report earlier this week, bankers met with the company's management team in preliminary talks ahead of an official selection process for underwriters to lead the Initial Public Offering (IPO). Currently valued at US$10 billion, Twitter's IPO has been hotly anticipated and the early discussions will provide banks some indication of what the company is looking to achieve from the offering, the report noted. 

However, chief executives including CEO Dick Costolo and CFO Mike Gupta reportedly expressed some concerns. Citing various sources, the report said the senior executives were keen for a "low profile" IPO to prevent a repeat of Facebook's botched IPO last year.

The microblogging site reportedly is considering a more conservative offering than Facebook's mega deal, and has recognized it still needs to monetize its business. "But Twitter is banking that it's positioned well going forward," a bank source told NY Post. 

In private markets, Twitter shares are worth about US$20, the report noted, citing filings from public funds that own stakes in the company. 

Its mobile advertising revenue--driven through smartphones and tablets--clocked US$134.9 million last year. It is expected to generate some US$582.8 million in overall ad revenue in 2013 and hit US$1 billion next year, according to projections from eMarketer.

Topic: Social Enterprise

About

Eileen Yu began covering the IT industry when Asynchronous Transfer Mode was still hip and e-commerce was the new buzzword. Currently a freelance blogger and content specialist based in Singapore, she has over 16 years of industry experience with various publications including ZDNet, IDG, and Singapore Press Holdings.

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  • twitter IPO will be a disaster.... to investors

    twitter is a scam, all it is is a virtual soapbox; with asshole cops;
    that take your soapbox for undisclosed amount of time. All it is is a
    social diversion.

    how do they expect to acquire value?
    Do they expect to reap the data-mining of what anon anonymity
    relishes? There is no advertisement.....

    "promoted" doesn't count, it
    angers twitter users. Also, the suspension thing is BULLSHIT!!!

    Could you imagine if google didn't let you have access to your gmail for a few days AFTER you pleaded via email? I would have dropped gmail; YEARS
    ago...

    twitter is a fad; that's all it is. It is
    the 1%.... and you expect this to be worth billions? MAYBE in cash that
    you want to keep from Obama; nothing more... in my opinion.

    ~lisbeth
    lisbethGyrl