Twitter:
Twitter is an online platform which connects people instantly and is into social media industry. It is a way through which people can share their views and opinions. They enable in creating, distributing and discovering the contents which can reach the entire world. They have some unique features like limitation in the number of characters entered which is 140 (U.S. SEC, 2013, p. 126). This made them to become more viral as short and effective messages were circulated by people. Twitter provides broader platform with wider reach. Twitter is being used by public, for business, by media by developers, celebrities and other public figures.
Twitter was begun in March 26, 2006 (Carlson, 2011). Twitter went public on November 7, 2013 (Geraldino, 2013). More new social media companies are going public following Facebook, money that are being raised through venture capital is always costlier when compared to stock market. IPO will enable the company to raise funds easily at lower cost and can make huge investment in technology improvement …show more content…
Other underwriters that are being used by them were JP Morgan Chase & Co and Morgan Stanley followed by BofA Merrill Lynch and Deutsche Bank Securities (U.S. SEC, 2013). Morgan Stanley was chosen by Facebook as the main underwriter but they faced more problems in the IPO. Therefore Twitter was cautious in selecting the suitable investment banker who is competent with Morgan Stanley in the market and thus, ended up with Goldman Sachs (Financial Times, n.d.). IPO was done on underwriter basis and not best effort basis. Goldman Sachs was to receive $59.2million as the charges. Banks will charge about 3.25% of the total IPO amount of $1.82billion as fees (Picker, 2013).
Number of shares issued is 70 million. Existing shares of the company were 474,696,816 @ $2.21 comprises of 38.4% of ownership as 70 million comprises of 61.6% of ownership (U.S. SEC, 2013, p.
Twitter is an online platform which connects people instantly and is into social media industry. It is a way through which people can share their views and opinions. They enable in creating, distributing and discovering the contents which can reach the entire world. They have some unique features like limitation in the number of characters entered which is 140 (U.S. SEC, 2013, p. 126). This made them to become more viral as short and effective messages were circulated by people. Twitter provides broader platform with wider reach. Twitter is being used by public, for business, by media by developers, celebrities and other public figures.
Twitter was begun in March 26, 2006 (Carlson, 2011). Twitter went public on November 7, 2013 (Geraldino, 2013). More new social media companies are going public following Facebook, money that are being raised through venture capital is always costlier when compared to stock market. IPO will enable the company to raise funds easily at lower cost and can make huge investment in technology improvement …show more content…
Other underwriters that are being used by them were JP Morgan Chase & Co and Morgan Stanley followed by BofA Merrill Lynch and Deutsche Bank Securities (U.S. SEC, 2013). Morgan Stanley was chosen by Facebook as the main underwriter but they faced more problems in the IPO. Therefore Twitter was cautious in selecting the suitable investment banker who is competent with Morgan Stanley in the market and thus, ended up with Goldman Sachs (Financial Times, n.d.). IPO was done on underwriter basis and not best effort basis. Goldman Sachs was to receive $59.2million as the charges. Banks will charge about 3.25% of the total IPO amount of $1.82billion as fees (Picker, 2013).
Number of shares issued is 70 million. Existing shares of the company were 474,696,816 @ $2.21 comprises of 38.4% of ownership as 70 million comprises of 61.6% of ownership (U.S. SEC, 2013, p.