Twitter intends to sell some 80.5 million shares in its initial public offering (IPO) which will be priced between $17 and $20 per share. The proceeds could net the micro blogging site at least $1.2 billion based on a midpoint range of $18.50 per share, according to documents filed with the United States Securities and Exchange Commission on Thursday.
Earlier Twitter said its share will list under the ticker symbol TWTR on the New York Stock Exchange. The social networking site has not yet announced its listing date but there are reports that this could be in November 15.
Documents filed with the SEC indicate that from the nine months ended September 30, 2013 to the nine months ended in September 30, 2013, Twitter’s revenue increased by 106 per cent to $422.2 million with a net loss increase by 89 per cent to $133.9 million.
Apart from its massive user base, Twitter said that its value also lies in its platform partners and advertisers. For instance, many media outlets around the world such as CNN, BBC, and the Times of India regularly use Twitter as a platform for its content distribution and use Twitter content and tools to enhance they Web sites and applications.
For instance, Canadian company Bell Media inked a deal with Twitter earlier this deal on a joint analytics research partnership. Bell Media also said it will employ AMPLIFY, Twitters branded, in-stream video tool that enables broadcasters to compliment on-air content with timely in-tweet video clips.
Advertisers, use Twitters promoted products, many of which are “pay-for-performance” to promote their brands, products and services. Twitter enables advertisers to target an audience based on a variety of factors including the consumer’s interests based what Twitter account the user follows and what actions the user takes while on the platform.
“Although we do not generate revenue directly from our users or platform partners, we benefit from network effects where more activity on Twitter results in the creation and distribution of more content, which attracts more users, platform partners and advertisers, resulting a virtuous cycle of value creation,” said Twitter.
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