Twitter grows in value, as the IPO rumours emerge
Twitter could earn as much as $11 billion (£6.8bn) from its Initial Public Offering, expected to happen in 2014, suggests research by the financial analytics firm Greencrest.
This means the company has regained value that was eroded by the issues surrounding Facebook’s IPO last year.
Are we there yet?
The $11 billion figure is based on trading in secondary markets, as well as Apple’s rumoured interest in the microblogging platform. According to the The Guardian, a funding round in 2011 valued Twitter at $8 billion, which later rose to $10 billion, before going down again thanks to Facebook’s problem-ridden IPO last May.
The exact date when Twitter will go public is still unknown. Last year, co-founder of the platform Jack Dorsey said that IPO will happen “when we feel the company is ready for that milestone.”
Analysts at Forbes have suggested that the company is already making changes to its management structure in anticipation of the big day, with Mike Gupta of Zynga fame being appointed the CFO, and Newsvine founder Mike Davidson hired as the VP of design.
Facebook’s shares are currently down 26 percent when compared with the IPO price, while Zynga’s value has dropped by 75 percent.
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