Friday, 4 October 2013

Twitter IPO: Company Hopes To Raise $1bn - Sky News

Twitter has unsealed the documents for its initial public offering of stock, saying it hopes to raise up to $1bn.

It generated $317m (£200m) in revenue in 2012, driven largely by advertising.

Twitter had more than 215 million active users as of the end of June, up 44% from the previous year - compared to Facebook's nearly 1.2 billion and LinkedIn's 240 million.

But the company revealed that it lost $69.3m in the first six months of 2013, compared with a loss of $49.1m for the same period last year.

The losses come as Twitter rolls out a massive infrastructure and staffing expansion programme.

The company's total income in 2012 more than doubled from 2011, with 87% of the revenue comes from ad sales.

The San Francisco-based social network unsealed the papers with the Securities and Exchange Commission (SEC) on Thursday.

Last month Twitter announced that it had filed confidential initial public offering (IPO) papers with the SEC to start the process of going public.

The newly released document showed that private investors have ploughed $759m (£470m) into the company and it still has $375m (£230m) cash reserves remaining.

Twitter did not say which stock exchange it plans to list its shares on, however the company said it intends to use the ticker symbol "TWTR".

Facebook is listed on the Nasdaq exchange in New York.

The underwriters of the offering are Goldman Sachs, Morgan Stanley, JP Morgan, BofA Merrill Lynch, Deutsche Bank Securities and CODE Advisors.

Twitter's expansion plans have seen huge growth in staff across Europe, with many based at the regional headquarters in Dublin.

Its UK subsidiary gains all of its revenue from services rendered to the Irish intermediary.

Last year Sky News revealed that its UK company was fined by the business regulator for failing to file accounts on time.

Companies House also dissolved its sister company, TweetDeck, earlier this year for repeated failures to file accounts.

Afterwards, an Irish chartered accountant was made director of Twitter UK and San Francisco-based CEO Dick Costolo resigned his role in the British arm.

:: Twitter recently advertised for a tax manager to "implement and monitor transfer pricing strategy" to minimise the amount of tax paid in its Europe, Middle East and African businesses.

Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)