All Signs Point To Twitter Gearing Up For IPO

Image via Flickr/ John Adams

An upcoming book, “Hatching Twitter: A True Story of Money, Power, Friendship and Betrayal” by New York Times reporter Nick Bilton reveals that the social media company is allegedly gearing up for an IPO—a rumor all too familiar.

Mike Isaac at AllThingsD wrote, “An IPO that likely isn’t that far off, according to numerous sources. Many expect that Twitter plans to file its S-1 to go public by the end of the year, possibly debuting publicly in early 2014.”

Rumors of Twitter going public have been circulating over the past few months. Investment banker Cynthia Gaylor’s departure from Morgan Stanley propelled those speculations in May. According to Gaylor’s LinkedIn profile, she’s been providing advice on IPOs, debt and financing and worked on deals for Facebook, LinkedIn and Netflix.

However, just a few days before Gaylor’s move to Twitter as head of corporate development was announced, co-founder Jack Dorsey told Bloomberg that he was “not even thinking” about an IPO right now.

A lot of people think of this as a goal you have to get to, but it’s a milestone,” he said. “If you think about it as a goal you’re rushing towards it and then stop, and that’s not the way to build a timeless company.”

BlackRock Inc. managed a fun that purchased $80 million in shares sold by employees; a move that valued Twitter at $9 billion.

A report published by research company Greencrest Capital titled “Twitter Inc.: On Flight Path to 2014 IPO” provided its on detailed account of when and why Twitter is on a path to IPO next year. It read:

Is Twitter positioning for an initial public offering (IPO) in 2014? The micro-blogging site has made a number of announcements since our last report, including management changes, site enhancements, global expansion, and new strategic alliances—all supportive of a possible IPO in 2014. Furthermore, the company is seeing strong traction in its monetization platform and continued robust user metrics.


Our core, positive thesis on Twitter is based on four growth opportunities ahead: (i) advertisement-based monetization features that are gaining traction; (ii) strategic alliances with leading companies and brands; (iii) strong mobile uptake of Twitter’s service; and (iv) expanding international footprint.”

By late 2013 or early 2014, Greencrest estimates that Twitter will be worth between $10.5 and $11 billion. The company took a closer look at its advertising initiatives and believe that promoted tweets, trends, and accounts have been “gaining traction” that could increase its revenue opportunity.

During an interview with Katie Couric, CEO Dick Costolo was asked whether or not he’d learned anything from Facebook’s blotchy IPO. He replied, “I don’t like to think about reacting to what other people are doing in the market. It’s like driving while looking in the rear view mirror.” When it comes to money, he added, “We think of revenue like oxygen. Essential to life but not the first thing you think about in the morning.”