On this Thursday, Twitter announced that it wanted to raise $1bn by listing on the US stock markets, making it the biggest initial public offering (IPO) from a technology since Facebook went public in May 2012.
I was thinking that how could Twitter let its revenue up to $1bn with its selling shares, because it did not make any profits and even lost &275 million. The only idea is to add more advertisement in order to increase their earnings. However, this behavior would largely arise the disagreement from users, because they may feel their experience would be disrupted and get annoyed by the Pop-up windows. As the data indicated, there are more than 65 percent of Twitter’s advertising revenue was generated from mobile devices, so that if they ruined the customer relationship and thus reduce the brand value, they will again keep losing a lot from their revenues.
From the nine building blocks of business model generation, I consider that Twitter has more than one group of customers, so it should think carefully before any decision-making. It seems that this decision could make large profits in the short run, but it will lost in the long run.
The following link to the passage is http://www.bbc.co.uk/news/business-24392336