Twitter Could Be Worth More Than $11 Billion If It Goes Public Next Year
If Twitter were to follow suit of its social media rival, Facebook, and go public, it could easily attain a valuation of over $11 billion.
If Twitter goes public in 2014, it’ll be worth more than $11 billion, according to New York specialist financial researchers Greencrest.
The firm made its valuation after analysing trading in secondary markets, where shares are privately traded.
Max Wolff, an analyst with Greencrest, said that Twitter’s value is up since Facebook went public last year.
“Using the secondary market for shares to mark enterprise value is a very difficult and opaque process.
“It is a rumor rich and special share class soup,” he told Forbes.
It is possible, however, that poor performance by Facebook and Zynga since their respective IPOs may affect Twitter’s valuation.
Facebook’s shares are down 26% since its IPO, while Zynga’s value has dropped by 75%.
Twitter’s valuation has also been inflated by the speculation of Apple’s interest in purchasing the social network.
“That said, Twitter is up since the Facebook IPO and is now valued at northward of $11bn,” said Wolff.
“This makes sense as growth in users and new monetisation efforts are both yielding fruit and pointing toward a good 2013 for Twitter.”
While many companies may look at an IPO as an exit opportunity, Twitter is regarding it as a milestone.
James Gilbert | Elite.