Twitter tweets its intent to go public

In this Nov. 8, 2011, photo, NASA fan David Parmet signs his name on a Twitter logo during a tweetup event for about 50 of NASA's Twitter followers at the Langley Research Center in Hampton, Va.

Brock Vergakis/AP

In this Nov. 8, 2011, photo, NASA fan David Parmet signs his name on a Twitter logo during a tweetup event for about 50 of NASA's Twitter followers at the Langley Research Center in Hampton, Va.

After much speculation, Twitter announced its intention to be traded as a public company, on Thursday.

Naturally, the 200-million-user microblogging service made the announcement through a tweet:

While pondering an announcement, USA Today reported that this initial public offering would be watched very carefully by other tech companies looking to take the plunge. The paper added:

"Consumer Internet public offerings took a hit after Facebook's star-crossed IPO in May 2012. (Facebook's stock has rallied, however, and is now trading at $44.07, renewing investor confidence in consumer-tech IPOs.)

"The IPO market, in general, is gaining steam. Pricings are up 38% from last year, and 131 have been filed this year, compared with 91 at the same time last year, according to Renaissance Capital — the best in several years."

Bloomberg reports that companies with "with less than $1 billion in annual revenue are able to submit IPO filings confidentially with U.S. regulators under the Jumpstart Our Business Startups, or JOBS, Act." This also means that we may learn little about the company, unless it goes public.

"Assuming Twitter does eventually decide to sell shares to the public, it will eventually have to disclose financial documents to the rest of world," All Things D reports. "In the meantime, the company and its bankers can communicate with the SEC in private."

The confidentiality will likely help Twitter avoid the public hoopla and intense scrutiny that surrounded the initial public offerings of other high-profile social networking companies, including Facebook Inc., which went public in May 2012.

Under the law, Twitter's financial statements and other sensitive information contained in the IPO filing must become publicly available at least 21 days before company's executives begin traveling around the country to meet with potential investors — a process known as a "road show."

More in Business

Comments

blog comments powered by Disqus