Twitter Seeking To Go Public

awarrenfells writes "While Dell Inc. is announcing its desire to go private, Twitter seems to be heading in the opposite direction with its recent tweet that it seeks to go public. From the article: 'Twitter has announced that it has filed for its IPO. Since Twitter was able to submit confidentially, this indicated that it had annual revenue of less than $1 billion in its most recent fiscal year. The JOBS Act allows for “emerging growth” companies with less than $1 billion in annual gross revenue to file in secret. Goldman Sachs is believed to be the lead underwriter for the deal, and Twitter will reportedly list on the NYSE.'"

Comments

Aahh Bless.

[Spottywot]

Bless the little hearts of those tiny emerging companies with turnover of less than $1 billion, they need all the help they can get.

would have been awesome had this happened --

[themushroom]

a year or two ago when the company was on the upswing, not shortly-to-be-passé.

Re:would have been awesome had this happened --

[Tackhead]

would have been awesome had this happened a year or two ago when the company was on the upswing, not shortly-to-be-passé.

Part of the problem with tech industry is that company lifecycles are shortening even faster than product lifecycles.

If it takes two or three years between the decision to go public and the actual IPO (plus another 6-12 month lockout period afterwards), and a company can only exist for 5-10 years before it becomes obsolete, the time between the decision to exit and the actual exit takes up a huge portion of the company's arc.

The VCs who backed GRPN and ZNGA made bank. Almost nobody else did. Sometimes you get lucky, like GOOG and LNKD, who raised enough capital to wall themselves off from competition. Sometimes a company can re-invent itself, like AAPL, AMZN and NFLX. Sometimes, you can find a sucker willing to pay top dollar for a worthless asset - MySpace had a good exit and left someone else holding the bag.

But those are the rare successes. Most of the time, the founder rides the rocket all the way up and all the way down to the ground, and even he ends up getting a fraction of what could have been made if he'd only shopped the company out earlier.

It's incredibly difficult to build a sustainable business in this industry. If you catch the big industry cycles: mainframe to micro, micro to client-server, client-server to cloud (mainframe), you can do so. Get out of sync with the industry fads - whether you're 1-2 years early or 1-2 years late - and your company will not outlast the pendulum swing. The optimum strategy is to find a fad, slap something together for $X, and try your damndest to get acqui-hired for $2X in a 1-2 year timeframe. Lather, rinse, repeat. If it's so important to be a CEO, sell the damn company anyways, and use the money you made off the last one to start the next one.

Re:would have been awesome had this happened --

[Jonah Hex]

Twitter has reached ubiquity, especially in the entertainment industry. TV Shows now include Twitter names and hashtags quite regularly as watermark bugs as well as the longer Facebook link during the credits. It's quite telling they put them up as bugs during the actual show with the network's logo bug, and even introduce people with a graphic with their name and Twitter ID, as well as special hashtags during the show. Twitter has beaten Facebook where it counts, in the minds of those who provide entertainment to the rest of us. - HEX

Re:Did They ...

[stephenmac7]

Helpful link: https://twitter.com/twitter/statuses/378261932148416512

Alright folks, prepare for Twitter to suck...

[ZorinLynx]

I've seen more than one awesome company go to suck after going public.

Why? Before going public, they only have to follow the wishes of themselves (the board) and maybe a few investors. They have a lot of freedom on what to do. Not everything the company does MUST be for maximum profit.

After going public, they are subject to the only desire stockholders have: Make money. Period. That's it. Taking risks and not going for maximum financial gain can mean a stockholder lawsuit.

Enjoy Twitter while it lasts, folks.