Investors Aren’t the Only Ones Interested in the Twitter IPO
Any hopes Twitter had for a quiet initial public offering have pretty much gone out the window at this point. The social media company’s IPO was a hot topic of conversation even before Twitter announced it had confidentially filed an S-1 with the Securities and Exchange Commission last week. Now that the ball is rolling, Twitter is in the spotlight, and it isn’t likely to leave anytime soon.
What has Twitter on everybody’s radar is not just its popularity as a social media platform — the company recently claimed 200 million users — but its increasingly successful monetization. EMarketer predicts the service will generate $582.8 million in global ad revenue in 2013, nearly $1 billion in 2014, and $1.3 billion in 2015.
This is up from $139.5 million in 2011 and $288.3 million in 2012. Twitter is currently valued at approximately $10 billion. The research firm also calculates that in 2013, Twitter will derive as much as 55 percent of its ad revenue from mobile, outshining companies like Facebook (NASDAQ:FB) and Google (NASDAQ:GOOG) in that arena.
But profit-hungry investors aren’t the only ones looking at Twitter. With an IPO looming, U.S. stock exchanges also also trying to get in on the action.