Twitter: Most Highly Anticipated IPO Since Facebook

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Sept. 12 (Bloomberg) -- Twitter said it filed for an initial public offering with the U.S. Securities and Exchange Commission. Bloomberg’s Emily Chang and Jon Erlichman speak with Pimm Fox on Bloomberg Television’s “Taking Stock.” (Source: Bloomberg)

Jon erlichman, let's start off with you.

Twitter, one hundred 40 characters.

It will be a lot more than 140 bucks.

Any idea how the valuation will be calculated?

Users, add revenue?

We have reported this was a company that was working its way towards having roughly a billion dollars in annual revenue.

I think people will be measuring it based on how much money the company may be able to generate both on the top and bottom line long-term.

A lot of the valuations are based on what the prospects for a company our.

We already know that based on the private market activity for twitter.

By the way, twitter has tried to crack down on how much trading there was privately in its stock but sort of the transactions that have taken place -- let me give you two numbers.

To numbers, 266 million, that is the 2013 ad sales for mobile.

216 million ad sales for desktop usage.

We are approaching half $1 billion in annual revenue for twitter.

There were estimates already valuations of around around $10 billion for this company, which does seem big.

This company has already seen a lot of traction with the mobile side of its business.

How often do we talk about a public company like facebook that has been moving a lot of its advertising revenue to its phone product, to mobile devices.

The advantage that some argue that twitter has was that it is a very simple layout and that you could seamlessly put these ads into twitter feeds and that would work very well on a mobile phone platform.

They have been pushing the message of the value, not just having those pop up in your twitter feed but having advertising tied to big tv events and that is where a lot of the buzz on twitter is happening.

All of that comes together and helps to explain why the advertising revenue is growing.

Up until now, twitter has been the bathtub story.

When you are going from having very little revenue to all of a sudden being able to tap into a phenomenon and generate a large amount of revenue, it is like filling up the bathtub.

As the company goes down this road it will be facing the same kind of questions that face but has in part because the valuation on this will be high and that raises the expectation for what twitter could be.

At me come to you, emily chang.

I know you have been trying to absorb the details as they cross your screen.

What can you tell us about this filing?

Picking up on some of the things that john said, twitter has been a mobile first company for a long time.

It was sometime in the middle of last year.

They said they make more money through their mobile then the web or desktop.

That will give investors more positives in twitter then perhaps they might have had in face but given the fact that when facebook made zero dollars from mobile advertising when they went public.

Over the year, they have increased that considerably.

This is now 40% or so of their total revenue.

This will give investors confidence that twitter has started to figure out its mobile story.

What will be interesting is to take a look at the early investors here.

Peter fenton was one of the earliest investors in twitter.

He stands to make millions off of this deal.

We have heard a lot about a potential $10 billion valuation for twitter but we will be waiting for that filing to learn more about the numbers.

I mentioned that twitter made one of its biggest acquisitions ever, the $350 million.

This will help twitter to improve their advertising product.

It will make it more interesting to advertise.

We will be waiting for the

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


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