Twitter's IPO Filing...Why Now?

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Sept. 13 (Bloomberg) -- Bloomberg's Jon Erlichman takes a look at the business behind Twitter. He speaks with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Jon erlichman has been looking into the business behind twitter.

Judging by the performance of the stock this year, timing may be on twitter's side.

Funny, a few months ago, you would have looked at the performance of facebook and said, that could create a challenging road for twitter.

Thanks to nice earning reports, facebook has been a darling in the stock market.

Yahoo, google, pandora, even zynga is up almost 30%. as we talked to sources over the last few months, market conditions were part of the reason of whether they would move ahead.

The business itself and the gains they have made are just as important.

If you think about some of the product they have rolled out, the obvious one that people know is the promoted tweets.

Advertisers will pay rates depending on how you engage with it.

Also, things like licensing data streams and amplify is one that they recently rolled out.

They work with media partners, more media getting into twitter, more video for example.

There is an opportunity for an advertiser to introduce video.

All of a sudden, you have a nice growth story to share with the market.

Of course, you potentially have the luxury of having stock that helps you get more talent in, make more acquisitions, stuff we have seen twitter ramping up with over the past few months.

Linkedin wasn't on your list but that is up more than 450% over the last couple of years.

Twitter is a smaller business in some respects, smaller than facebook or google.

Talk to us about the size of twitter in comparison to some of these other juggernauts.

The number that gets faded so much is the idea that twitter could be on the road towards $1 billion in revenue.

I thought i would look at what wall street analysts estimate facebook and google will make.

Facebook's revenue is projected to be 10 times what twitter could potentially make next year.

Google, more than 50 times.

That is a reminder that google has proven value to advertisers in being a place where you search come you show intent on what you might buy.

That is valuable to advertisers.

Facebook is a platform , but it knows about you, your friends, your likes, your dislikes.

That is incredibly valuable to advertisers.

Twitter is still figuring out that part of the story.

It is where everybody wants to be.

It is the hotspot, lots of conversations.

That is exciting to advertisers.

Whether it can be the place where you can ultimately get to something like a sale of a product through advertising, that is still in the early days.

Jon erlichman, senior west coast correspondent, thank you.

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

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