Investors are growing excited about the possibility of Twitter going public in the near future. There are many who feel this is an inevitability and there is some evidence to support their theories. In the following video Bloomberg’s Jon Erlichman talks about the possibility of an initial public offering by Twitter Inc in the upcoming year.
First off, private trading of Twitter stock is growing and under current United States Security and Exchange Commission guidelines, all privately traded companies with over 500 investors must disclose their financial particulars (very much the same way a publicly traded company must). Twitter may well be reaching this mark in the near future and want to reap the advantages of going public.
Secondly, Twitter’s management teams appear to be growing heavy with members well-versed in running publicly-traded companies. Why employ the expertise without exercising it?
And third, the current success of recent IPO’s like Groupons, and the much anticipated Facebook IPO, could be the kind of momentum to make this IPO speculation a reality. The market seems to be ripe for internet IPO’s right now. Why not raise the capital?
But, there doesn’t seem to be a pressing need for the Twitter organization to go public. They are experiencing huge growth and don’t seem to be having trouble raising funding without going public. We’ll have to wait and see what the new year brings.