Twitter Seeks $1.4 Billion in Biggest Web IPO Since Facebook
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Twitter is seeking as much as $1.4 billion in the largest Internet initial public offering since Facebook, betting it can convince investors of its ability to turn 500 million tweets a day into profits.
Twitter plans to sell 70 million shares at $17 to $20 each in the offering, according to a regulatory filing today. That would value the company at $10.9 billion at the top end of the range, cheaper than Facebook and LinkedIn Corp., based on the 544.7 million common shares outstanding after the IPO. The IPO is set to price Nov. 6, according to data compiled by Bloomberg.
The six-year-old short-messaging site, which draws more than 230 million monthly active users and has transformed the way people communicate, is taking advantage of renewed appetite for social-media stocks to sell a 13% stake. While the company has more than doubled revenue annually, it hasn’t yet turned a profit and the pace of user gains is slowing. Still, Chief Executive Officer Dick Costolo is betting the service’s popularity on mobile phones will help lure advertisers.
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