Twitter Special, Unlike All Social Media: Borthwick

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Oct. 28 (Bloomberg) -- John Borthwick, CEO at Betaworks, discusses what sets Twitter apart from other social media, the company’s growth prospects and mainstream uses for the service. He speaks on Bloomberg Television’s “Bloomberg Surveillance.”

That we don't see in the media reporting?

From a product perspective, twitter tends to get bundled in with other social networks.

This company is an iconic company.

It is a different kind of experience.

It ages incredibly well to use this so people tend -- many other social media tends to stagnate but people get deeper into twitter.

You wonder about the valuation.

I don't buy a single digit price to sale valuation.

Do we have the metrics wrong when we value twitter?

There are very few companies out there that are fundamentally mobile companies that have grown up as mobile companies.

Twitter has been mobile from the outset.

Most of the experience is mobile and most of the monetization is happening on mobile.

As the underlying shift takes place, twitter is probably the best vice company to be the beneficiary of mobile.

What happens beyond the distribution of information?

Is there a retail play here and can people shop on twitter?

These are the questions that investors will be asking.

I know why we use twitter and companies use twitter but honestly, why does grandma need to use twitter?

Who does she broadcast to?

The main stream element is not necessarily the same.

One of the areas the company has struggled with over the years is what we call the onboard experience.

Why should someone get onto the product?

You have to think about twitter from two different perspectives.

There is publishing like when grandma tweets or maybe not.

You can use twitter very effectively without tweeting as an inbound force and it is incredibly malleable.

It lets you go very broad and go for celebrities or news hosts and lets you go very narrow.

There is a video posted by twitter to accompany the roadshow.

They talk about how they need to keep spending to grow and their profit will eventually come from that.

It sounds like it is out of the amazon playbook but amazon is an exception and people say twitter cannot follow that model.

I think amazon is a phenomenal tech company who surprises year after year and i think they built from a very narrow base, saying they were books, to being retail, cloud services and i think that twitter is positioned in a similar way.

The ipo is what they are trying to keep control of.

At some point, there is a frenzy to acquire these shares.

Do you anticipate -- i'm not asking you to to predic -- this is one of the hottest topics right now.

Will the price range increase?

To your point about control -- you have control up to a search and point but as much as you have locked up the essential insiders and the large investors, you have not locked up every one of the early investors and that is where the uncontrollable element comes into play.

Would you buy shares?

We own shares.

Would you buy more shares?

Are you allowed to say?

Are you locked up?

We are locked up for six months.

There is a massive jargon alert.

What is locked up?

It limits your ability to sell -- it's an effort to control the price especially in the first few months of trading.

Essentially, in an ipo process, to control the price, early investors are barred sometimes from selling into the market.

Why don't we switch for a week?

Can i get up later?

Will you continue to be betty liu on "in the loop?" thank you so much.

John borthwick will continue to stay with us for the hour.

Also coming up, leaked information about the u.s. spying on our allies hitting the white house at a crucial time and we will discuss this on "bloomberg surveillance," on bloomberg television, streaming on your phone, your tablet, and

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