Twitter which is valued at more than$10 billion dollars announced today — on Twitter, obviously— that it has filed with the SEC to go public. The move marks a significant big change in the history of the 7-year-old company, which began as a side project at a failed podcasting startup and has since become a prime global source of news and entertainment. Twitter, will be able to use money generated from its initial public offering to build products, ramp up its advertising efforts, and acquire the talent needed to keep pushing its growing social network into the mainstream especially with advertising.
The social networking company said this will be a “confidential” filing, or what Forbes has called a “secret” IPO. When the American President Obama signed the JOBS Act into law, companies with less than $1 billion in revenue gained the ability to go
Public without releasing the financial documents that normally accompany this move.
Twitter has to make the case that ad dollars spent on Twitter can match or exceed the effectiveness of ad dollars spent on other social sites like Facebook and other sites around the web.
That’s why Twitter has invested hundreds of millions of dollars in building a next-generation advertising platform that executives argue is better at targeting users than Facebook.