Recent analysis on the heavily anticipated Twitter IPO has shown that the social media company could be valued at as much as $20-billion dollars (U.S.) after trading starts. The company plans to raise over $1-billion dollars (U.S.) from a share sale. Everyday half-a-billion tweets are sent by Twitters 218 million users; a 44% increase from 151 million in 2012.

Twitter is trying to avoid suffering a same sort of disappointing fate that Facebook experienced during their IPO in May 2012. Twitter’s main source of revenue is in advertising and as far as R&D goes, Twitter doesn’t really do a lot of updating. Twitter is a unique “say what you’re doing” type of social media site, and that sort of leaves them with the simplicity of not having to constantly re-invent the wheel. In 2012 Twitter’s revenue had increased nearly 200% percent to $316.9 million dollars (U.S.)

The question that remains on most Twitter users minds is, “When is this fad going to burn out?”. Facebook certainly hasn’t yet and if Twitter can keep the fire burning then this IPO will prove to be a huge success.

http://www.theguardian.com/technology/2013/oct/03/twitter-ipo-share-sale

Under two weeks ago Blackberry received some good news from Toronto based financial holdings company, Fairfax Financial Holdings Ltd. Fairfax is planing to offer Blackberry $4.7-billion dollars (U.S.) for the company, which equates to roughly a $9-a-share-bid. The bid was made at the time when the company’s share value was $9.08; on Friday (Oct. 4th) however the stock fell to $7.69 per share. This new share figure is only 10 cents  higher than the $7.59 per share figure that Veritas Inc. has calculated for Blackberry’s liquidation value. Veritas’ analyst Neeraj Monga said that Fairfax leader Prem Watsa would despite the fall in stock price likely be against lowering it’s $9 per share bid, and “would be extremely against withdrawing an offer entirely.”

It will be interesting to see what happens if Fairfax does absorb Blackberry, how will they use the company to benefit, will they revive the free-falling telecommunications company or use it’s resources to help grow themselves bigger and better.

In response to Fraser Denton’s article on Blackberry being behind the times, I completely agree. Blackberry being one of the leading smartphone makers for so long should have caught onto the fact that touch screens were the next big thing. Fraser’s insight and recommendations are on point.

https://blogs.ubc.ca/fraserdenton/2013/10/06/the-squished-berry/

http://www.theglobeandmail.com/report-on-business/fairfax-strikes-47-billion-deal-to-buy-blackberry/article14470689/

http://www.theglobeandmail.com/report-on-business/blackberry-falls-near-liquidation-value-says-report/article14715711/