Twitter IPO is a go

Twitter IPO announced

Twitter IPO announced

Twitter has announced through its own microblogging account its filing for initial public offering of stock Thursday. The social media company, however, kept the details about the Twitter IPO a secret at least for now.

The company submitted its filing confidentially to the Securities Exchange Commission, taking advantage of new regulations passed last year. The Jumpstart Our Business Startups (JOBS) allows small entrepreneurs to keep its financial data away from the public’s eye.

So why is Twitter, one of the most popular social media services, considered a “small business”? Under the new law, companies earning less than $1 billion of annual revenue can file for IPOs confidentially.

Rumors about the Twitter IPO has been around for years, especially after Facebook filed its IPO in May 2012. Twitter has seized the opportunity now that social media companies have been treated well in Wall Street lately. After a rough start, Facebook and LinkedIn hit record highs this week.

Twitter was launched in 2006 and it was only years later when the 140-character-only blogging platform exploded as celebrities and other high-profile personalities set up accounts to reach out to followers. As of March this year, Twitter has over 200 million active users globally. Last month, the service set a record of 143,199 tweets per second during the airing of a Japanese TV show. (Even Miley’s performance at the VMA’s could not beat that, but we digress.)

In Wall Street, however, it is not about how many active users you have or how many people tweets per second, but on how to make money off them. Twitter currentlly earns revenue through promoted tweets, promoted corporate accounts, and enhanced brand profiles.

Twitter refuses to comment further about its IPO filing, saying its only statement would be the tweet it posted about the IPO.

Source: CNN Money

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