In a recent tweet (how else?) Twitter made public its plans to go public:
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
The IPO will probably be lead by Goldman Sachs and as the company has already received offers between $26 and $28 a share which puts the company valuation somewhere above $15 billion.
What’s next for Twitter, before the IPO ?
Now that Twitter has made public its plans, it will need to add some figures to its revenue. The fact that they were able to submit a S-1 form confidentially means that Twitter’s revenue is still under 1 billion (their recent moves show that they are trying to reach that target by end 2014).
Three things to expect now that Twitter has announced it will go public
Soon enough we will probably know more about what’s under the hood but we should be expecting some changes in the company and in the market:
- More focus on revenue. Duh! Twitter recently hired ex Ticketmaster CEO Nathan Hubbard to handle Commerce operations. Note that there is no one too high profile handling this at Facebook.
- One of the reasons Twitter hasn’t yet gone public is Facebook. Although Mark Zuckerberg seemed to handle the IPO pretty well, the fact is Facebook was overvalued and undertraded in the first half-year after the public offering but then George Soros bought in… Dick Costolo thought it would be better to wait a little bit and see how everything works out for FB. Now that Facebook’s stocks are trading well above its initial prices, things seem to be a little brighter.
- Twitter will need to turn their ads into something that generates global traction. That means they will probably implement new formats. I expect it to focus a lot on multichannel experience and conversion.