This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-24664145
The article has changed 7 times. There is an RSS feed of changes available.
| Version 4 | Version 5 |
|---|---|
| Twitter plans to raise $1.4bn via its share sale | |
| (about 2 hours later) | |
| Twitter has unveiled the price range for its shares when the company lists on the stock exchange. | |
| In a filing on Thursday, Twitter said it planned to sell 70 million shares priced between $17 and $20 (£10 - £12) to raise up to $1.4bn (£865m). | In a filing on Thursday, Twitter said it planned to sell 70 million shares priced between $17 and $20 (£10 - £12) to raise up to $1.4bn (£865m). |
| The offering represents 13% of Twitter and values it at as much as $11bn. | The offering represents 13% of Twitter and values it at as much as $11bn. |
| Analysts said the valuation, which was less than forecast, indicated the firm wanted to avoid the dip in prices that followed Facebook's listing. | Analysts said the valuation, which was less than forecast, indicated the firm wanted to avoid the dip in prices that followed Facebook's listing. |
| "They're trying to price this for a very strong IPO, ideally creating the conditions for a solid after-market," said Brian Wieser of the Pivotal Research Group. | "They're trying to price this for a very strong IPO, ideally creating the conditions for a solid after-market," said Brian Wieser of the Pivotal Research Group. |
| Facebook's shares were priced initially at $38 per share. The stock soared within hours of its debut to a high of $45 but later slumped. | Facebook's shares were priced initially at $38 per share. The stock soared within hours of its debut to a high of $45 but later slumped. |
| Some analysts had blamed over pricing of the shares as a reason behind the fall. However, Facebook shares have since recouped most of their losses and are now trading above the listing price. | Some analysts had blamed over pricing of the shares as a reason behind the fall. However, Facebook shares have since recouped most of their losses and are now trading above the listing price. |
| Earnings worries | Earnings worries |
| Twitter's share sale on the New York Stock Exchange will make it the biggest internet company to go public after Facebook. | Twitter's share sale on the New York Stock Exchange will make it the biggest internet company to go public after Facebook. |
| The microblogging site has seen steady growth since its launch seven years ago. | The microblogging site has seen steady growth since its launch seven years ago. |
| According to its IPO documents, it now has 218 million monthly users and 500 million tweets are sent a day. | According to its IPO documents, it now has 218 million monthly users and 500 million tweets are sent a day. |
| However, all those users and tweets have not yet resulted in a profit. Twitter made a loss of $69m in the first six months of 2013, on revenues of $254m. | However, all those users and tweets have not yet resulted in a profit. Twitter made a loss of $69m in the first six months of 2013, on revenues of $254m. |
| Some analysts said that while the lower-than-expected pricing may help its share prices in the days after the listing, in the long run investors would still need to see the firm make profits. | Some analysts said that while the lower-than-expected pricing may help its share prices in the days after the listing, in the long run investors would still need to see the firm make profits. |
| "The fact that the valuation is lower than expectations, I think was smart by the underwriters. I think it will help the pop," said Michael Yoshikami of Destinational Wealth Management. | "The fact that the valuation is lower than expectations, I think was smart by the underwriters. I think it will help the pop," said Michael Yoshikami of Destinational Wealth Management. |
| "But in the end, even for $11bn, the question is can they come up with earnings to substantiate that number? And it's unclear that they're going to be able to do that." | "But in the end, even for $11bn, the question is can they come up with earnings to substantiate that number? And it's unclear that they're going to be able to do that." |
| Advertising | Advertising |
| Almost 85% of Twitter's revenue currently comes from advertising on its site. | Almost 85% of Twitter's revenue currently comes from advertising on its site. |
| There are three main ways for a company or an individual to advertise on Twitter: by promoting a tweet that will appear in people's timelines, promoting a whole account, or promoting a trend. | There are three main ways for a company or an individual to advertise on Twitter: by promoting a tweet that will appear in people's timelines, promoting a whole account, or promoting a trend. |
| Twitter tends to charge its advertisers according to the amount of interaction their content generates. | Twitter tends to charge its advertisers according to the amount of interaction their content generates. |
| Some analysts say the company has showing strong signs of growth, with revenue rising from just $28m in 2010 to $317m by the end of 2012. | Some analysts say the company has showing strong signs of growth, with revenue rising from just $28m in 2010 to $317m by the end of 2012. |
| One research firm, eMarketer, has even estimated that Twitter's revenues from advertising sales will increase by more than 100% by the end of this year. | One research firm, eMarketer, has even estimated that Twitter's revenues from advertising sales will increase by more than 100% by the end of this year. |