Is this the beginning or the beginning of many problems? Has the long-awaited day arrived? Let’s hope they can borrow the “Lessons Learned” project files from Facebook.
Twitter has a 200 million user microblogging service and is a great platform for all including family historians. The service has filed for its initial public offering and was appropriately acknowledge with a simple tweet: “We’ve confidentially submitted an S-1 to the SEC for a planned IPO,” the company said in a tweet on Thursday. “This Tweet does not constitute an offer of any securities for sale.”
Twitter’s grape vine type announcement is a twist on the new confidential IPO process made possible by the recent JOBS act, which gives companies leeway to make their initial fillings with the SEC without public analysis.
It has been noted in several articles that Twitter is taking advantage of a JOBS filling indicates that the company’s annual revenue is less than$1 billion. Companies above that threshold can’t use the JOBS process. This is the first time that a company has acknowledged the initial S-1 filing in public using the “secret” IPO process.
Interestingly, on Monday, Twitter bought MoPub, the mobile ad exchange startup in a deal manly composed of Twitter stock.
It’s going to get interesting because many people prefer communicating through Twitter to the convoluted time-consuming Facebook.