Why the hyped Twitter IPO is a time bomb.
On Thursday afternoon, the popular microblogging service Twitter made its IPO filing public, drawing intense scrutiny to the ubiquitous yet not entirely profitable brand. Started in 2007 and used by millions upon millions of people, the service has had a hard time making money outside of promoted posts.
Everyone from Barack Obama to house party DJs use the service to blast out everything from news to opinions and even nonsensical jokes. Known for its strict 140-character limit, Twitter has become the defacto way to get pieces of official information out direct from the source; just a few weeks ago the Syrian Army used its Twitter to lash out at anti-Assad protestors for blaming them of chemical warfare.
You can view the paperwork behind the filing here on the SEC website.
Twitter had previously announced that it had already filed private IPO documents, but this public announcement comes with the promise of major investors such as Goldman Sachs and JP Morgan being able to get their piece of the metaphorical Twitter pie. Twitter is expected to raise approximately $1 billion in funding from this round of investment.
Reports are that the public will be able to invest in Twitter in or around November.