The Twitter IPO whirlwind
Running amok are a plethora of other informational bits on the topic. Lucky for you, we'll try to guide you through the whirlwind and bring you up to speed on latest things Twitter IPO. We'll let you be the judge on whether we're getting there or an IPO is “not necessarily inevitable.”
Word on the street is that Twitter, now 7, is about to bring in anywhere between $400 and $600 million in annual revenue for 2013, with some analyst pegging that number at a billion dollars for 2014. This is a pretty hefty sum, and Twitter has been following a trend the last few years of approximately doubling its ad revenue year on year. Call it serendipity if you like, but Twitter has had 'mobile' in its DNA since day one, so much in fact, that the first tweet ever was sent from a mobile phone in 2006, a distinction (and an advantage) that investors are keenly aware of.
Already sound IPO-ready? Not according to Twitter CEO, though: Costolo commented in January, amidst mounting speculations about the company's IPO options, that an IPO is not “necessarily inevitable”. Moreover, according to him, the service is just getting started.
Furthermore, he killed off the notion of an upcoming investment round, by noting that Twitter was growing 'organically' and that the company still sat on a sizable sum from last year's one.
You might be thinking by now, perhaps Costolo is simply a tough nut to crack. Now Square CEO, Twitter's creator, Jack Dorsey, still sits on the company's board. In an April interview this year, Dorsey reinforced this notion of a unified vision and a streamlined strategy behind Twitter and the entire IPO debacle joining voice with Costolo in much the same tune. Reportedly, Dorsey even went as far as stating that Twitter “is not even thinking” of an IPO right now.
So is the IPO happening or not? And if it is, what is the ballpark number being floated around (that Costolo doesn't care about) in terms of valuation? On the count of question one, we leave that at your discretion. On valuation, a funding round in 2011 pegged Twitter at just about $8 billion. In a more recent valuation in January 2013, Greencrest Capital ups that number to somewhere between $9 and $11 billion. Twitter reported that as of February it has 200 million active users.
source: Aspen Ideas Festival, Wired 'Disruptive by Design', Greencrest Capital 1, 2