Following in the footsteps of Facebook, Twitter has announced they have filed for initial public offering, but details of the offering will not be available straight away, with Twitter keeping business details confidential.
The Securities and Exchange Commission allows companies earning under $1 billion in revenue per year to start a private IPO. Unlike Facebook, who got lots of flack early on, Twitter will be able to hide away and make business agreements in the dark.
Considering Twitter does not make nearly as much revenue as Facebook, it is a good option to maintain secrecy until the need arises and make sure everything is ready for the IPO before public scrutiny.
Facebook and LinkedIn have both started rising in the stock market over the past few weeks, with Facebook passing its initial IPO amount at around $40. From what we have seen in the past few months, Facebook is only going to go up in price.
Twitter may have to start lower, considering the company still does not have a good platform of revenue and does not want to be like Facebook and plaster ads all over the website, they are still looking at new ways to advertise without getting flak from users.
This news comes on the eve of Twitter 5.0 for Android, currently in closed beta. We believe Twitter will look to add a new iOS7 update and possibly merge into other platforms, along with Vine. We may even see Vine ads come to the app and Twitter’s homepage soon.