Twitter has a market value of up to $11 billion and is preparing for listing on the stock exchange in 2014, according to financial analysis company Greencrest, quoted by The Guardian. The evaluation is based on transactions with shares of Twitter on secondary markets.
In 2011, Twitter has been evaluated during a funding operation at $8 billion, then at $10 billion on secondary markets. After the problems during the Initial Public Offering (IPO) of Facebook in May 2012, the market value of Twitter has dropped to $9 billion. Max Wolff, an analyst at Greencrest, showed that the value of Twitter has suffered due to speculations that Apple is interested in buying the company, but then recovered.
“It is a rumour rich and special share class soup. That said, Twitter is up since the Facebook IPO and is now valued at northward of $11 bn. This makes sense as growth in users and new monetisation efforts are both yielding fruit and pointing toward a good 2013 for Twitter,” said Wolff. He added: “Using the secondary market for shares to mark enterprise value is a very difficult and opaque process”.
The analyst believes that Twitter will prepare this year the listing of the company on the stock market and has already begun strengthening its management structure as recently pointed out by Forbes. Twitter has a new CFO, Mike Gupta, who came to the company last month from Zynga and replaced Ali Rowghani, the new Chief Operating Officer, while the founder of Newsvine, Mike Davidson, took office as Vice-President in October.
Chairman Jack Dorsey said last year that Twitter will be ready for the IPO “when we feel the company is ready for that milestone.”
Both Facebook, listed at $38 in May 2012 and Zynga (NASDAQ:ZNGA ), listed at $10 in December 2011 had disappointing evolutions on the stock market. Zynga shares were around $2.41 and Facebook was quoted at just under $28 today on Nasdaq.
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