9-12-13 7:21 PM EDT | Email Article
 

By Benjamin Pimentel and Dan Gallagher, MarketWatch

 

SAN FRANCISCO (MarketWatch) -- Twitter is planning to go public.

 

The San Francisco-based social-media network said Thursday it has filed papers as part of a plan for an initial public offering. The announcement was made via the company's own official Twitter account on Thursday.

 

"We've confidentially submitted an S-1 to the SEC for a planned IPO," the post said. "This tweet does not constitute an offer of any securities for sale."

 

The confidential nature of the filing appears to be based on the law passed last year, called Jumpstart Our Business Startups Act, or JOBS Act, which allows companies with less than $1 billion in annual revenue to make its first IPO filings with the Securities and Exchange Commission without those papers becoming public.

 

Under the JOBS act, the company's financial data will become public either 21 days before it begins a road show for prospective investors, or 21 days before pricing the IPO.

 

The filing suggests Twitter has less than $1 billion in annual revenue. By comparison, fellow social-media giant Facebook Inc. (FB) had about $3.7 billion in annual revenue when it made its first S-1 filing in February of last year.

 

Twitter was reportedly valued around $10.5 billion by GSV Capital -- one of its top investors -- last month.

 

Bloomberg reported Thursday that Goldman Sachs Group Inc. (GS) would be the lead underwriter of the IPO.

 

Twitter chief executive officer Dick Costolo has been quiet about the company's IPO plans. At an appearance at the D11 Conference in May, he said his focus was on building the business and remarked that questions about an IPO made him feel like a football player at a key point in the game, with someone on the sidelines saying: "Hey, what are you doing after the game?"

 

Earlier this week, Costolo delivered a brief speech on management at the TechCrunch Disrupt conference, but he left the stage without taking questions -- raising some speculation that an IPO was in the works.

 

Twitter's IPO is expected to be a landmark event in the steadily growing social-media market. The filing comes as investors have become far more positive on Facebook, which held its own IPO in May of last year that was widely seen as a big flop.

 

Facebook's shares have surged more than 68% since the company's last earnings report on July 24, which showed strong growth in its mobile-advertising business. The stock closed at an all-time high of $45.04 on Wednesday.

 

On Thursday, J.P. Morgan and RBC Capital each raised their price targets for Facebook to more than $50, citing the company's strong momentum in the online advertising market.

-Benjamin Pimentel; 415-439-6400; AskNewswires@dowjones.com

 

Subscribe to WSJ: http://online.wsj.com?mod=djnwires


(END) Dow Jones Newswires

09-12-13 1921ET

Copyright (c) 2013 Dow Jones & Company, Inc.
Copyright 2014 MarketWatch
Add a Comment

News   More...

Start Premium Trial Register For Free

P F Fund Financial Data (13,000+ funds)
P F Stock Financial Data (7,000+ stocks)
P F Stock and Fund Screeners (basic)
P F Investing Articles and Market Commentary
P F Articles Archive (>30 days)
P F Discuss (dozens of stock, fund, bond, and general bulletin boards)
P F Portfolio Manager (basic)
P F Morningstar Investment Classroom
P F Access Your Portfolio Anytime, Anywhere via Your Mobile Device
P   Morningstar Fund Analyst Reports (full research on 1,700 funds, ETFs, and CEFs)
P   Morningstar Stock Analyst Reports (full research on more than 1,100 stocks)
P   Portfolio Manager (advanced with 10 X-Ray analyses, including recommendations)
P   Portfolio Monitor (monthly and on-demand personalized portfolio statements)
P   Morningstar Proprietary Stock Information (stock star ratings, buy/sell prices, economic moat ratings, and more)
P   Morningstar 5-Star Stock and Fund Favorites & Red Flags eNewsletters
P   Premium Stock and Fund Screeners (advanced with nearly infinite ways to find the best securities for you)
P   Discounts on Morningstar newsletters, books, seminars, and more

Sign-up to Morningstar


Basic Access

Articles and Videos
Morningstar video reports, articles, data, and tools. Dig into our lineup of e-newsletters and investing classroom courses outlining sensible strategies for maximizing your investments.
Morningstar Discuss
Follow the buzz on individual stocks or fund families. Plus, read the latest posts from Morningstar members and analysts.
Portfolio Manager
Track your investments and watch lists with our Portfolio Manager. Customize your view with our comprehensive stock, fund, and ETF data.

Access these features and more when you sign up for Free Membership.
Join Morningstar today. It's Free.

Unlimited Access

Analyst Research
Gather in-depth, actionable insight on over 3,700 stock and mutual funds covered by Morningstar analysts. View our mutual fund Analyst Reports favored by professionals, savvy experienced investors, and new investors researching options for retirement savings, college plans, or other investment needs.
Portfolio X-Ray®
Ensure your portfolio is positioned exactly how you want with Morningstar's X-Ray Interpreter and Stock Intersection tools. A Barron's "Best of the Web" award winner for five years running, X-Ray Interpreter goes under the hood of your portfolio to provide a useful allocation, sector, and geographic analysis. And you can discover how much of a stock you really own, individually and through mutual funds, with Stock Intersection.
Investment Picks
Find new 5-star stocks (greatly undervalued companies) to consider daily. Our 5-star stock rating is a proven winner, consistently beating benchmarks like the S&P 500. Plus, browse our Fund Analyst Picks and Stewardship Grades to find shareholder-friendly mutual funds that are poised for outperformance.
Portfolio Monitor
Get a clear view of your investments with personalized reports about your portfolio. Receive monthly statements and generate reports on-demand to help you stay on track to meet your investment goals.

Access these features and more when you sign up for Premium Membership.
Start your free 14-day trial today online
Your subscription may be tax deductible. Please contact your tax advisor.

Content Partners
Morningstar - - UPDATE: Twitter files 'confidential' papers for IPO
Name |  Ticker |  Star Rating |  Market Cap |  Stock Type |  Sector |  Industry Star Rating |  Investment Style |  Total Assets |  Category |  Top Holdings |  Top Sectors |  Symbol |  Title Star Rating |  Category |  Total Assets |  Top Holdings |  Top Sectors |  Symbol |  Name Topic |  Sector |  Key Indicators |  User Interest |  Market Cap |  Industry Name |  Ticker |  Star Rating |  Market Cap |  Stock Type |  Sector |  Industry Star Rating |  Investment Style |  Total Assets |  Category |  Top Holdings |  Top Sectors |  Symbol / Ticker |  Title Star Rating |  Category |  Total Assets |  Symbol / Ticker |  Name Title |  Date |  Author |  Collection |  Popularity |  Interest Title |  Date |  Company |  Symbol |  Interest |  Popularity Title |  Date |  Company |  Symbol |  Interest |  Popularity Title |  Date |  Author |  Collection |  Interest |  Popularity

Previous: UPDATE: Twitter falls below $40, new post-IPO low  |  Next: UPDATE: Twitter founders have big stakes in IPO