Why Twitter's IPO Is a Victory for Goldman Sachs

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Sept. 12 (Bloomberg) -- Bloomberg's Cristina Alesci, Emily Chang and Jon Erlichman report on Twitter's IPO filing. They speak with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Following the vote for dell private equity move.

Goldman sachs, the lead underwriter on this deal.

Tell us about it.

Being a lead underwriter in these high-profile ipo's is a huge assignment.

We just broke the story on that.

It was not part of the filings.

They view this very lean confidential file a will there are not those numbers.

This gives them some time to assemble their story and perhaps really develop a solid fix.

Goldman and the other two underwriters will help them to create this over the coming months.

Obviously we don't have any numbers out of this filing.

Usually when they file, you get to see at least some bare-bones figure on their revenue, their profit.

Here, it is done in this way that we are not able to see these assignments, the bankers are a big deal.

It comes with a tremendous amount of fees and definitely this is a feather in goldman's cap.

Why would they be filing a document with the securities and exchange commission but not releasing any numbers?

How does that help anybody?

It helps them because they want some time to formulate their story and huddle with their bankers to protect this in the best light possible.

You have to consider their still the facebook effect in the sense that a lot of in investors felt burned.

It was executed in a way that some people had a lot of questions about to say the least.

Investors sought the stocks drop that day and for many weeks and months after that.

It did not recover.

Twitter might be taking a more conservative it approach.

They are conscious of how investors feel about facebook and taking a slightly different approach.

One of the numbers that we know about is 175 million tweets a day.

This was in 2012. that is old information, investors, they love a growth story and that is certainly part of the twitter story him isn't it?

I was just looking back at my interview with the ceo from a few months ago and the goals are huge.

They want to reach every single person on the planet.

The big question with twitter has been can they really go mainstream?

Right now, it is still a niche product for some people.

Some people think it is too confusing, unlike facebook which obviously has several times more users than twitter does.

We will actually pull some of that interview and show it to you.

I want to talk about the bankers that christina was mentioning.

This is a huge victory.

Goldman sachs has been lagging in terms of the technology ipo.

Especially the consumer tech ipo's. facebook's ipo is not seen as initially successful.

This is a huge win for goldman sachs.

You can imagine that all of the banks were competing fiercely for this position that goldman sachs has now won and of course everyone will be watching to see how the ipo plays out.

In terms of the s-1 not been public, i want to bring out of the groupon filing.

He obviously had a number of filings that seriously questioned the way that they parse out certain metrics.

If twitter has some similar issues, they can do all of it behind closed doors and not in front of the public so that when we do alternately see the numbers, all of the tees are crossed crossed and the eyes are dotted presumably.

Getting back to the ceo, i spoke about his management style over the past couple of years.

He has been working to build a strong team.

He is an improv comedian, he is very much and at revert.

Jack dorsey is an introvert.

In my interview, he talks about how well they work together.

The spotlight will be on mike group, the cfo who was actually the cfo at zynga.

-- the spotlight will be on mike gupta.

This guy has a tough job ahead in terms of pulling this off.

I want to come to you because one of the things you mentioned previously is this big push for advertising that twitter is putting together where on an automated basis you can sign up for an ad campaign . it is not matter who you are or what your services but you can do this on an automated basis and then you get automated results showing what worked and what didn't work.

There are various stages that twitter has to get through to be comfortable in how the business model is taking shape to take this next step.

Think about who advertises.

Small businesses, big businesses advertise.

One of the early steps was making it easy enough if you are a small business, it is a great place for me to get the word out.

How to why put some marketing dollars to work?

They took the next step to say that we know a lot of the large advertisers, they work with outside parties.

Twitter invited some specialists to be part of the twitter family indirectly in to how better target some of those ads.

Emily was talking about where we go next.

Think about what this company has been doing over the last few months.

Pretty aggressive with acquisitions and hiring and new business lines.

Something that we were first reporting.

They hired this for commerce.

That is not mean that they will jump into commerce necessarily.

Here is a company that knows it will be getting all sorts of questions like what we are talking about.

This business has a big valuation.

As a public company, how do you grow?

One of the things they have had some relatively good feedback and experience with is things like twitter cards.

You have to be pretty creative with that.

Twitter cards are a way to expand so that you can get a photo or something more substantial in their to try to get someone's attention.

They are using that kind of as a that means don't towards commerce.

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


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