Twitter had been rumored for the last few months to be working on an IPO, but the company has been quite tight lipped on the subject until today. Twitter announced that it will indeed be taking the company public, joining the ranks of social media rival Facebook. According to theverge.com:
“Twitter announced today, on Twitter of course, that it has filed with the SEC to go public. The company is currently valued around $10 billion dollars and the IPO will provide it with the cash it needs to compete with Google and Facebook for talent.”
The official tweet from Twitter is as follows:
“We’ve confidentially submitted an S-1 to the SEC for a planned IPO. This Tweet does not constitute an offer of any securities for sale.
— Twitter (@twitter) September 12, 2013“
This is a big deal for Twitter, as it means that they are secure enough to execute a business strategy that would return profits to their investors. They hopefully have learned from Facebook’s IPO and it should go a little smoother. Facebook’s CEO actually commented on Twitter’s potential IPO today stating that while the IPO was good for Facebook, he’s the last person they should ask about how to make one go smoothly.
There will be updates to this story as details unfold.
