Twitter

Twitter wants to raise $1bn in its stock market debut.It made a loss of $69m in the first six months of 2013, on revenues of $254m. Raising $1bn could help the twitter to improve the way how the advertiser connects with users, because most of the revenue comes from the ad sales (around 85% of the total revenue). Users could be pleased with such improvements. As a result, it might increase the sales from the advertisements again, since improvements could attract more people than before. Furthermore, the rest of the Twitter’s revenue came from licensing its data. Money raised could be invested to develop the technology to extract data. If a large amount of data is collected, it could be required by certain companies which need a vast database to make predictions. Twitter may have more than 218 million monthly users. Such an advantage will enrich the database for Twitter, therefore if the information is used reasonably. It then could boost the revenue for Twitter. The difficult situation faced by the Twitter might be improved.

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