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Goldman Sachs to underwrite Twitter IPO

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By Ishbel Macleod, PR and social media consultant

September 14, 2013 | 2 min read

Twitter’s announcement yesterday that it is going to be listed on the stock market has been followed by the news that Goldman Sachs has been revealed as the lead underwriter for the initial public offering.According to eMarketer, revenues for Twitter will reach $580m in 2013, double last year’s total; with the social company having recently acquired mobile advertising exchange MoPub to help integrate RTB into its ad platform. However, Twitter will be under pressure during the IPO, since Facebook, Groupon Inc., and Zynga Inc., all lost more than half their value within six months of their listings.Micke Paqvalén, CEO and founder of Kiosked, a global platform for social and visual content, commented: “Filing for IPO means that Twitter will now be under huge pressure to show that it is a profitable business, and its advertising model will play a huge role in deciding its value. Content that is easily shareable, such as images and video, provide a rich social experience that is increasingly integrated into Twitter feeds. “However, using tools that enable brands to monetise this content in innovative ways will be the key to Twitter’s future success. The integration of Vine means that the social network is already thinking about engaging its community through interactive, visual content. “To demonstrate profit, it’ll be necessary for Twitter to demonstrate that it can monetise this content effectively, and this can be done by making images and video directly shoppable. Twitter is going in the right direction but only with a non-intrusive, useful and relevant advertising model, will it be possible to monetise its content effectively without alienating its community.”Twitter’s tweet about the announcement racked up over 14,000 retweets.

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