From Facebook to LinkedIn, Weibo to Instagram, social networks are all consuming in today’s world. Of course, when it comes to listing popular social networking services, Twitter has to be included.
Twitter is one of the dominant players in the social networking market. Throughout the past few years, social media has shown to be a lucrative market; with a plethora of adolescents and teenagers looking for ways for “self-expression”, this should come as no surprise. While social networking market was still in its infancy just a year ago, Twitter is now looking to raise 1 billion dollars.
The seven-year-old company which was once operating in the private sector is now launching an initial public offering (IPO) after seeing a loss of $69m in the first two quarters of 2013. While the company itself has never made a profit, unlike Facebook, its revenue had increased eleven times between 2010 and 2012, from $28m to $317m. Twitter will most likely list on NASQAD, the second largest American stock exchange. Analysts are predicting a positive response for Twitter’s IPO, as it will be the largest Silicon Valley stock offering since Facebook’s listing just last year. Holders of Twitter’s common stock will be entitled to one vote per share.
However, with the increase in social networking sites, it can be said that social networks are becoming excessive. After all, who needs five different social networking accounts? With the rise of social networks like Snapchat, Twitter’s popularity is slowly dropping. While Twitter might not be in its prime anymore, it’s making a smart move by launching its IPO sooner rather than later.
Do you think Twitter’s IPO will be received positively?
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