Twitter files Form S1 with SEC

Goldman Sachs is likely to be the lead underwriter for the IPO.

New Statesman
Photograph: Getty Images.

Social networking and microblogging service Twitter has filed a Form S1 with the US Securities Exchange Commission (SEC) to go public.

The announcement was made through a tweet, which reads “We’ve confidentially submitted an S1 to the SEC for a planned IPO. This tweet does not constitute an offer of any securities for sale.”

As per the SEC, firms defined as ‘emerging growth companies’ with annual revenue of less than $1bn can file S1 confidentially under the Jumpstart Our Business Startups (JOBS) Act of 2012. Moreover, the documents submitted by Twitter to SEC will not be made public.

Twitter, which has more than 200 million users, is the highly anticipated consumer internet IPO in the market currently. Investment banking firm Goldman Sachs Group, which lost out to competitor Morgan Stanley on similar roles in the technology IPOs in the recent past including Facebook, is likely to be the lead underwriter for the Twitter IPO.

Earlier this week, the company has agreed to acquire mobile advertising exchange MoPub for $350m in an effort to launch its independent mobile advertising exchange in the near future.

Research firm eMarketer estimates that Twitter’s revenues will reach $582m this year and $1bn in 2014. The company has been valued at more than $10bn (£6.3bn) by private investors.

Commenting on the confidential filing, Andrew Frank, social media expert at Gartner told the BBC: “For one thing it gives its investors a way to get some of the money back that they put into the company at the beginning. It gives Twitter itself extra funds to invest in new projects and innovation. It also gives it the status of having a position on the stock exchange, which of course puts the firm in a different league to a start-up.”