Social Media giants, Twitter, are seeking to raise about one billion Dollars in their Initial Public Offer as the Internet company plans to go public.
Twitter was created in March 2006 by Jack Dorsey and by July 2006, the site was launched. The service rapidly gained worldwide popularity, with 200 million active users in 2012, who posted 340 million tweets per day. The service also handled 1.6 billion search queries per day. Twitter is now one of the ten most visited websites, and has been described as “the SMS of the Internet”.
The much anticipated announcement that the micro blogging giants will be going public has finally been made but it was greeted with cautious optimism after the not so brilliant performance of Facebook shares immediately after they went public May last year.
Facebook shares have, however, risen since they went public thanks to mobile advertising.
With just over two hundred million monthly users Twitter has a smaller audience base than facebook and subsequently would attract a lower value than Facebook did.
Twitter has been valued at $10 billion Dollars.
Investors would expect Twitter to earn money from advertising to its 218 million monthly users but the company is reportedly not making a profit yet.
Twitter has revealed in papers filed with US regulators for the first time that it has made a revenue of $254m and a loss of $69m in the first six months of the year 2013.
Analysts however say Twitter is showing signs of strong potentials as revenues rose from just $28m in 2010 to $317m in 2012.