Twitter IS going for that long-rumoured IPO. The news was revealed late yesterday in a tweet (how else!) from the microblogging service.
The news was revealed late yesterday in a tweet (how else!) from the microblogging service.
More than 170 billion tweets have been sent in the company's seven-and-a-half years. It now has around 200 million users.
The San Francisco-based company said in its own tweet yesterday, "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."
However submitting the form to the Securities and Exchange Commission does begin the process for an initial public offering.
A securities rule change put in place last year allows companies with less than $1 billion in yearly revenue to file initial IPO paperwork confidentially.
The advantage for companies, said the Wall Street Journal, is they can keep their financial results secret until they are closer to pitching their stock to investors.
Some startup advisers say the confidential IPO option is making some young companies more willing to accelerate IPO plans.
Twitter was valued last month at about $10.5 billion by GSV Capital Corp. , one of its investors, said Bloomberg. This is up 5 percent from a May estimate. Facebook, which raised $16 billion last year, now has a market value of about $109 billion.