Feeds

Twitter snubs IPOcalypse host Nasdaq in favour of NYSE

Blue Bird heads to OTHER Big Apple exchange to flog its shares

Build a business case: developing custom apps

Twitter has revealed that it has snubbed the tech-heavy Nasdaq market in favour of the New York Stock Exchange (NYSE) for its IPO.

Twitter's Nasdaq snub may have something to do with that exchange's mishandling of Facebook's market debut last year, the last highly anticipated tech IPO.

In an event that came to be known here at The Reg as the IPOcalypse, technical glitches on the exchange held up the start of trading in the social network's stock and then caused buys and sells to go through at the wrong time, leaving investors unsure how much stock they owned and at what price. Nasdaq had to cough $10m to the Securities and Exchange Commission (SEC) for the cockup.

The microblogging site is just the latest tech firm loss for Nasdaq in recent years, after it also missed out on the chance to host firms like LinkedIn, Workday and Yelp, which all listed on NYSE.

Twitter said in an updated filing with the SEC that it was going with the NYSE at the same time as reporting three times as many quarterly losses.

The amended IPO filing showed that Twitter's revenue and users were continuing to grow, but so were its losses. In the three months to September, revenue doubled to $168.6m and monthly active users were up 39 per cent to 231.7 million, but net losses also increased to $64.6m from $21.6m in the previous year.

Like many other tech firms, Twitter built up its userbase first and then – as soon as some money came in – began expanding its sales and marketing budget to get more folks buying into its advertising platform. The company's spending on sales and marketing has had almost the exact inverse ratio of its losses, increasing from $23.6m to $61.2m.

Unlike some other internet companies however, Twitter seems to be doing well on mobile, reporting that over 70 per cent of its ad revenue came in from phones and tablets.

If its IPO is successful, stakeholders like Twitter co-founders Evan Williams and Jack Dorsey and CEO Dick Costolo stand to make a pretty penny. With a 12 per cent share in the site, Williams could turn out to be worth over a billion dollars if prices hit around the $20 mark some analysts are expecting, while Dorsey would bag a little under half a billion dollars.

Costolo, who was an early angel investor, will take home around $100m with his 1.6 per cent share. Other top investors include Rizvi Traverse, run by financier Suhail Rizvi, which holds 17.6 per cent and "entities associated with" JP Morgan Chase, which have a 10.3 per cent holding. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.