Twitter has become a globally important microblog since its founding in 2006, and on Thursday the company announced it will cash in its chips with a public stock offering.
At 5 p.m. EDT, after the stock market had closed, the tech titan's Twitter account read, "We've confidentially submitted an S-1 to the SEC for a planned IPO. This Tweet does not constitute an offer of any securities for sale."
We’ve confidentially submitted an S-1 to the SEC for a planned IPO. This Tweet does not constitute an offer of any securities for sale.
— Twitter (@twitter) September 12, 2013
Despite a skeptical reception by public investors, tech companies including LinkedIn, Pandora Media and Yelp Inc. have gained more credibility for investment in social media stocks during 2013, according to the Financial Post.
Facebook enjoyed popularity when it went public in May 2012, but the company's stock slumped for months after the company failed to reassure investors of its value. Facebook finally surpassed the stock price of its IPO in July, and traded at a new high on Wednesday when it rose above $45.
Twitter's valuation was set at $9 billion in January by financial investment firm BlackRock Inc., and at $9.8 billion in May by financial investment firm GSV Capital Corp., according to Bloomberg. Twitter has made recent acquisitions of tech startups to prepare for an IPO, according to Time. The company reported in March that it has 200 million active users, which send approximately 400 million tweets daily. Twitter will generate more than $500 million in advertising revenue in 2013 and nearly $1 billion in 2014, according to a report by research firm eMarketer in March.