Twitter said last Thursday that it filed for an Initial public offering, setting the stage for the most high-profile technology stock market debut since Facebook went public last year, according to USA Today. Twitter announced the filing of it’s IPO with one tweet, saying: “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.”
A second tweet was posted saying “back to work” with a picture attached of employees at Twitter headquarters in San Francisco.
Created in 2006, Twitter has become a new way to communicate and is used by everyone from kids, to celebrities, and even the President of the United States. The company has just recently started to generate serious revenue seven years later, by showing ads in the stream of other tweets that users can view. Twitter will haul in $583 million in advertising revenue for 2013 and hit $1 billion in 2014, according to eMarketer.
The filing for an IPO comes at a perfect time as the fourth quarter approaches, which is a strong period for social media activity and related advertising, according to Sam Schwerin of Millennium Technology Value Partners, which owns a small share of Twitter.
Twitters filing will be a total upside compared to Facebook’s IPO last year, which turned out to be the worst decision Facebook could make. Although Facebook shares are up more than 60% so far this year, that doesn’t seem to be enough to compete against Twitter.
Twitter has made the first step to an IPO, which takes approximately three to six months or longer to process. There has been no price range for the stock yet, but there is no doubt that you will be seeing Twitter in the headlines these next few months preparing for their world wide company to be seen by the world, literally.