What Does Twitter’s IPO Mean for Tech Companies?

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Nov. 7 (Bloomberg) -- Bloomberg Contributing Editor Paul Kedrosky and Sir Martin Sorrell, CEO & founder at WPP, discuss the climate around the IPO market for internet companies, what Twitter’s IPO means for the industry and look at some that may be ready to come to market. They speak on Bloomberg Television’s “Bloomberg Surveillance.”

Kedrowky?

I do not think the average company looks at it and says i wish that was me.

The reality is most are smaller.

The only thing this does is it makes people look and say ipos are back.

One problem we have had with venture investors is we end up selling too many companies in the private market, which hurts our returns.

Mike would you say there is still a facebook hangover and people are nervous?

It comes up right away.

Maybe we should do so in the private market.

We are ready know there are consumer internet ipos.

The big one everyone is looking at is alibaba.

Who's going to be huge.

-- it is going to be huge.

Chinese mobile's him a which i think will be much more revolutionary than you think.

The transactions platform, logistics that form.

This is the beginnings of it.

Going into the banking business.

He will get a banking license probably in china.

He, maybe with robin lee of baidu will be in the banking business.

Really interesting what they are doing.

This matters to everyone looking at the u.s. ipos.

You cannot compare alibaba to the companies you just mentioned.

Totally different things.

50 billion.

These are companies that do rank with facebook.

Baidu the fifth most visited website in the world.

It is not a google or amazon, it is both.

We tend to be segmented, google, amazon, twitter, facebook and the single verticals.

What the chinese are doing, building a much more complex series of platforms.

What is very interesting is they have been very active.

Activision and the music business.

They are and social networking.

I hear a lot of pinterest, too.

What about the valuation of $4 billion?

Is pinterest about let advertising platform ? not yet.

These are valid user platforms.

The question is whether they will be monitored -- whether they will be used as such.

In terms of scale, no.

The big scale platforms, the ones we were talking about before like google, facebook -- mobile still in its infancy.

We have to see which way it goes.

The issue is whether it can modernize -- monetize this.

We know that you and i and others spend a third of our time on mobile.

We know our clients and ourselves are spending about 20%. there is a natural increase.

We know we are investing probably too much in newspapers and magazines as opposed to consumer usage of about 10. that is the key point him overtime advertising dollars follow how people spend their time.

Now there is a lag happening.

The question is, how do people communicate?

Are they having social interactions, or are you searching for a particular product?

That brings back the facebook problem.

One of the fundamental problems they had is as you ratchet revenue that comes up the expense of the user experience.

They are going to have to walk that line.

On search, a specific thing in mind.

Contextually, totally different.

That is a social experience.

And in advertising experience.

It is important.

Spoken like a true madman.

Sir martin sorrell will be with us for the hour.

Also, the cover of the new business week.

Kedrowky?

I do not think the average company looks at it and says i wish that was me.

The reality is most are smaller.

The only thing this does is it makes people look and say ipos are back.

One problem we have had with venture investors is we end up selling too many companies in the private market, which hurts our returns.

Mike would you say there is still a facebook hangover and people are nervous?

It comes up right away.

Maybe we should do so in the private market.

We are ready know there are consumer internet ipos.

The big one everyone is looking at is alibaba.

Who's going to be huge.

-- it is going to be huge.

Chinese mobile's him a which i think will be much more revolutionary than you think.

The transactions platform, logistics that form.

This is the beginnings of it.

Going into the banking business.

He will get a banking license probably in china.

He, maybe with robin lee of baidu will be in the banking business.

Really interesting what they are doing.

This matters to everyone looking at the u.s. ipos.

You cannot compare alibaba to the companies you just mentioned.

Totally different things.

50 billion.

These are companies that do rank with facebook.

Baidu the fifth most visited website in the world.

It is not a google or amazon, it is both.

We tend to be segmented, google, amazon, twitter, facebook and the single verticals.

What the chinese are doing, building a much more complex series of platforms.

What is very interesting is they have been very active.

Activision and the music business.

They are and social networking.

I hear a lot of pinterest, too.

What about the valuation of $4 billion?

Is pinterest about let advertising platform ? not yet.

These are valid user platforms.

The question is whether they will be monitored -- whether they will be used as such.

In terms of scale, no.

The big scale platforms, the ones we were talking about before like google, facebook -- mobile still in its infancy.

We have to see which way it goes.

The issue is whether it can modernize -- monetize this.

We know that you and i and others spend a third of our time on mobile.

We know our clients and ourselves are spending about 20%. there is a natural increase.

We know we are investing probably too much in newspapers and magazines as opposed to consumer usage of about 10. that is the key point him overtime advertising dollars follow how people spend their time.

Now there is a lag happening.

The question is, how do people communicate?

Are they having social interactions, or are you searching for a particular product?

That brings back the facebook problem.

One of the fundamental problems they had is as you ratchet revenue that comes up the expense of the user experience.

They are going to have to walk that line.

On search, a specific thing in mind.

Contextually, totally different.

That is a social experience.

And in advertising experience.

It is important.

Spoken like a true madman.

Sir martin sorrell will be with us for the hour.

Also, the cover of the new business week.

Be sure to pick it up.

This text has been automatically generated. It may not be 100% accurate.

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