Twitter tweets it'll go public - FOX 35 News Orlando

Twitter tweets it'll go public

Posted: Updated:
NEW YORK (AP) -

Twitter has decided to go public. The company aptly announced on its short messaging service Thursday afternoon that it has filed documents for an initial public offering of stock.

San Francisco-based Twitter Inc. posted on its official Twitter account that it has "confidentially submitted an S-1 to the SEC for a planned IPO."

The documents Twitter filed with the Securities and Exchange Commission are sealed, as Twitter is taking advantage of federal legislation passed last year that allows companies with less than $1 billion in revenue in its last fiscal year to avoid submitting public IPO documents.

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."

Twitter's IPO has been long expected. The company has been ramping up its advertising products and working to boost ad revenue in preparation. But it is still tiny compared with Facebook, which saw its hotly anticipated IPO implode last year amid worries about its ability to grow mobile ad revenue.

Most of Twitter's revenue comes from advertising. Research firm eMarketer estimates that Twitter will generate $582.8 million in worldwide ad revenue this year, up from $288.3 million in 2012. By comparison, Facebook had ad revenue of $1.6 billion in the April-June quarter of this year. By 2015, Twitter's annual ad revenue is expected to hit $1.33 billion.

Twitter is planning its public offering at a time of heightened investor interest in the IPO market. There have been 131 IPOs that have priced so far this year, according to IPO tracking firm Renaissance Capital. That's a 44 percent increase from the same period the year before. If the momentum continues, 2013 will have the most IPO pricings since 2007 -a year before the financial crisis.

The law that allowed Twitter to file its initial IPO documents confidentially is called the Jumpstart Our Business Startups, or JOBS, Act. President Barack Obama signed the law in 2012. It is designed to make it easier for small businesses and startups to grow and create jobs.

The law includes a provision that allows a company with revenue below $1 billion to file its registration statement for an initial public offering of stock with the Securities and Exchange Commission confidentially. This allows the paperwork to remain private until 21 days before the company starts marketing the deal to investors.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • Download the FOX 2 Apps


  • FOX 2 News Five-Day Forecast
  • What's HotMore>>

  • Police: Pair taped having sex on Bradenton Beach

    Police: Pair taped having sex on Bradenton Beach

    Monday, July 21 2014 11:22 PM EDT2014-07-22 03:22:58 GMT
    Police arrested a couple accused of having sex in front of dozens Sunday afternoon on Bradenton beach, and it was all caught on tape.
    Police arrested a couple accused of having sex in front of dozens Sunday afternoon on Bradenton beach, and it was all caught on tape.
  • To Heaven and Back: Boy Dies Three Times Following Car Accident

    To Heaven and Back: Boy Dies Three Times Following Car Accident

    Tuesday, July 22 2014 8:09 PM EDT2014-07-23 00:09:09 GMT
    Landon Whitley lost his father in a car accident, but he, too, was pronounced dead at the scene. He says he went to heaven -- and returned three times.
    Landon Whitley lost his father in a car accident, but he, too, was pronounced dead at the scene. He says he went to heaven -- and returned three times.
  • Fifty Shades of Grey trailer is finally out

    Fifty Shades of Grey trailer is finally out

    Thursday, July 24 2014 9:53 AM EDT2014-07-24 13:53:18 GMT
    Finally, it's our first look at the movie version of the best-selling erotic novel, "Fifty Shades of Grey."
    Finally, it's our first look at the movie version of the best-selling erotic novel, "Fifty Shades of Grey."
Powered by WorldNow

35 Skyline Drive
Lake Mary, FL 32746

Phone: (407) 644-3535
News Tips: (866) 55-FOX35

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices