Tuesday, 29 October 2013

Twitter hope to avoid Facebook's mistakes as they sell up to 85 million shares ... - Express.co.uk

Mr Dorsey, who holds a reported 3% stakes, looks set to add up to $450m, around £300m, to his fortune from the event.

It is often the case that companies launch IPOs to sell a percentage of their shares to the public in order to make profit to buy back more shares.

Twitter officials has more than 215 million active members, a figure that increased by 44% from the previous year.

However the San Francisco-based blogging site announced earlier this year that the company had tripled its income in 2012 to $316.9m, but still lost $79.4m.

The company's revenue largely comes from advertising, with a reported 85% of profit coming from online advertising.

Advertising sales are expected to double over the next year if the IPO is a success.

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