Twitter is beginning its IPO roadshow on Monday. Company officials and underwriters will travel the country making presentations to institutions and individuals, in hopes of boosting its stock offering next month.
The social media giant plans to initially sell 70 to 80 million shares, roughly 13 percent of the company, for between $17 and $20 each. They hope to bring in between $1.4 and $1.6 billion with the IPO, trading under the name TWTR.
The company is being valued at about $11 billion. That’s more than Yelp and AOL combined, but it’s still modest for the social media giant. Some analysis had predicted it would be valued at as much as $15 billion.
The cautious valuation is being seen as a way to avoid the pitfalls that Facebook faced during its IPO. But as the finances of the company stand right now, the company had a third-quarter net loss of $64.6 million — though quarterly revenues more than doubled to $168.6 million.
In an attempt to increase revenue, Twitter is expanding its ads. One key audience for those ads may be the people who live tweet while they’re watching TV.
“They will figure out the best way to maximize this desire for people to interact with each other while they have this same media experience,” Here & Now media analyst John Carroll says. “I think that’s where the opportunities are.”
- John Carroll, Here & Now media analyst and professor of mass communications at Boston University. He tweets @johncarroll_bu.