Twitter IPO: We want $17 to $20 per share for all our - sorry, your - witterings

Twitter has told US financial watchdog the SEC that it hopes to offer its shares between $17 and $20 apiece, meaning it could bag $1.61bn if the much-anticipated initial public offering is a success. Twitter will tout 70 million shares to the market, while keeping at least half a billion unsold. The social network's executive …

[Eddy Ito]

The market for our products and services is relatively new and may not develop as expected, if at all.

They have products? I mean real products since I assume that here 'products' means apps that are just icons for accessing the service. It's like a dedicated browser window for a web page isn't really an app, it's more a shortcut or bookmark that strips much of the browser functionality out.

[Don Jefe]

'People who are not our users may not understand the value of our products and services and new users may initially find our product confusing. '

People who are our users may not understand the value of our products and services and may perpetually find our product confusing. FTFY.

I've tried Twitter a few times because people keep talking about how valuable it can be for up to the minute information. I've found that 'up to the minute information' is generally absolutely worthless and can't be acted on. It takes time for actual details to be verified and published. If you're willing to act without validated information you might as well just go with a Magic 8-Ball and save yourself some data usage.

I do not see the value of their product, I don't know what services they think they're offering and I'm confused about why they see themselves worth anything.

[miknik]

89% of revenue from advertising

Where did the rest come from?? Selling little blue bird window stickers to coffee shops?

[Charles Manning]

Where did the rest come from?

Perhaps that Snowden bloke knows the answer.

[Destroy All Monsters]

14 billion?

Maybe it should be called the "Zumwalt Destroyer".

[Tromos]

Good for celebs

Alan Davies begs to differ.

[the cogito?]

If your not making any £$

You shouldn't be aloud to float. IPO value should be calculated on assets, turnover and potential future growth of said assets and turnover based of historical patterns.

Twitter makes nothing - all the content is user driven/created. If everyone leaves what do they have? A bunch of servers and few 100 staff. So their actual value is a few servers and few 100 staff. So about £5m.

I said this on another comment relating to Royal Mail and the fact they own Jet Air Planes and massive distribution centers along with car and Lorries + employing 1000s of people. JUST WFT are these valuation people smoking !!!

[Don Jefe]

Re: If your not making any £$

The stock market isn't interested in the past or the present. It's all about tomorrow!

But seriously, the lack of profit does not negate the advantages of going public. Your debt management options are far better, then there's also the fact they may not have much of a choice.

One of the many nasty side-effects of taking equity investment is that after the initial investment negotiations are over, the timeline for a liquidity event is basically set in stone. You've got (x) amount of time to deliver ~10x return on investment either through operational success, profits (which rarely happens), through another round of funding (which may dilute value beyond an acceptable level) or an IPO. If you can't pull it off your investors can activate the default and performance clauses in the lending agreement and take over the company and/or force the sale of its assets. If that happens your company will never make the IPO stage, you're picked apart before you ever get close.

Equity investment (VC for the buzzword fans) is a rough game to get into. Your investors aggressively pursue a massive return and to satisfy their risk management policies you surrender huge levels of control to them.

[AnotherBoringUsername]

Re: If your not making any £$

That's not entirely true. The stock market is definitely interested in the past and present. Heavy discounts can be applied for past under-performance by the company in question, or it's management, or its peer group in general as sectors fall in and out of favour (or premiums for those with a stellar record). Furthermore the more risk-averse markets are, the more cash becomes king, and those companies without a proven (or at least extremely credible) route to profit are going to be discounted heavily.

So whilst it is about tomorrow - the past and present do have a bearing.

[Don Jefe]

Re: If your not making any £$

Yeah, I was being facetious about the 'tomorrow' thing. It just seems like that's all they care about sometimes :)

I was however, being serious about the debt management options and having your hand forced by investors.

[Student in Aviation Management]

Hey guys, what do you suggest is the most profitable company to invest in the stock market...I was going for Twitter but these comments have brought allot of unsaid facts to light...Please give me suggestions or even links to getting into this business..also is it possible to buy Twitters IPO stock online, like where do you go for that?