Five questions answered on Twitter’s plans to be listed on the stock market

We've confidentially submitted an S-1 to the SEC for a planned [initial public offering]."

Twitter has announced it plans to join the stock market. We answer five questions on the social networking site’s plans for stock market flotation.

How did the company announce its plans to join the stock market?

On Twitter of course. The company sent out a tweet saying "We've confidentially submitted an S-1 to the SEC for a planned [initial public offering]."

Twitter said little else about its flotation plans, refraining from giving a timing or price for the offering.

How much is Twitter worth?

Investors have valued the microblogging site at more than $10bn (£6.3bn).

But how does Twitter actually make money?

Mostly through advertising and companies paying for promoted tweets. These tweets post on people’s timeline, typically reaching 200 million active users, who alone send more than 500 million tweets a day.

According to advertising consultancy eMarketer, Twitter is on track to post $583m in revenue in 2013, up from $288m in 2012.

What affect do analysts think floating Twitter on the market will have for the company?

Analysts have said it could result in increased advertising because there could be a drive for increased advertising revenues post-flotation.

"There's a few issues [such as] how many revenue streams can be developed beyond just advertising, the impact of more people accessing the service via smartphones," said Colin Gillis, a New York-based technology specialist at BGC Partners told the BBC.

So why now have Twitter decided to float the company on the stock market?

Andrew Frank, social media expert at technology research company Gartner, speaking to the BBC offered some possible reasons: "[The IPO] gives its investors a way to get some of the money back that they put into the company at the beginning.

"It gives the employees a similar kind of event to reward them for the success they've had so far. And it gives Twitter itself extra funds to invest in new projects and innovation."

Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

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John McDonnell's seminars are restoring Labour's economic credibility

The Shadow Chancellor's embrace of new economics backed by clear plans will see Labour profit at the polls, argues Liam Young.

It’s the economy, stupid. Perhaps ‘it’s the economy that lost Labour the last two elections, stupid’ is more accurate. But I don’t see Bill Clinton winning an election on that one.

Campaign slogan theft aside it is a phrase Labour supporters are all too familiar with. Whatever part of the ‘broad church’ you belong to it is something we are faced with on a regular basis. How can Labour be trusted with the economy after they crashed it into the ground? It is still unpopular to try and reason with people. ‘It was a global crisis’ you say as eyes roll. ‘Gordon Brown actually made things better’ you say as they laugh. It’s not an easy life.

On Saturday, the Labour party took serious steps towards regaining its economic credibility. In January a member of John McDonnell’s economic advisory committee argued that “opposing austerity is not enough”. Writing for the New Statesman, David Blanchflower stated that he would assist the leadership alongside others in putting together “credible economic policies.” We have started to see this plan emerge. Those who accuse the Labour leadership of simply shouting anti-austerity rhetoric have been forced to listen to the economic alternative.

It seems like a good time to have done so. Recent polls suggest that the economy has emerged as the most important issue for the EU referendum with a double-digit lead. Public confidence in the government’s handling of the economy continues to fall. Faith in Cameron and Osborne is heading in the same direction. As public confidence continues to plummet many have questioned whether another crash is close. It is wise of the Labour leadership to offer an alternative vision of the economy at a time in which people are eager to listen to a way by which things may be done better.

Far from rhetoric we were offered clear plans. McDonnell announced on Saturday that he wants councils to offer cheap, local-authority backed mortgages so that first-time buyers may actually have a chance of stepping on the housing ladder. We also heard of a real plan to introduce rent regulations in major cities to ease excessive charges and to offer support to those putting the rent on the overdraft. The plans go much further than the Tory right-to-buy scheme and rather than forcing local authorities to sell off their council housing stock, it will be protected and increased.

It is of course important that the new economics rhetoric is matched with actual policy. But let’s not forget how important the rhetoric actually is. The Tory handling of the economy over the last six years has been dismal. But at the last election they were seen as the safer bet. Ed Miliband failed to convince the British public that his economic plan could lead to growth. The branding of the new economics is simple but effective. It does the job of distancing from the past while also putting a positive spin on what is to come. As long as actual policy continues to flow from this initiative the Labour leadership can be confident of people paying attention. And as economic concerns continue to grow ever more pessimistic the British public will be more likely to hear the Labour party’s alternative plan.

Liam Young is a commentator for the IndependentNew Statesman, Mirror and others.