Twitter predicted to float at $15bn in 2014

Twitter is believed to be preparing for a high-profile stock market flotation in which the microblogging site could be valued at $15bn (£9.6bn), according to reports.

Twitter: reportedly preparing for a stock market flotation
Twitter: reportedly preparing for a stock market flotation

Dick Costolo, the tech company’s chief executive, is reported to have discussed his intentions for an IPO with possible advisers including Morgan Stanley, Goldman Sachs and JP Morgan, with a view to float as early as January 2014.

Twitter does not publicise its earnings, although The Sunday Times said analysts have estimated that the company will generate nearly $600m (£385.65m) in advertising sales this year.

In May, Twitter fuelled speculation that it would seek an IPO by appointing a Morgan Stanley investment banker, Cynthia Gaylor, as its head of corporate development.

Gaylor worked on the public offerings of Facebook, LinkedIn and Zynga.

In January, Twitter was valued at $9bn (£5.78bn) following an offer arranged by the firm to its own staff, facilitated by asset management company BlackRock.

Facebook priced its shares at $38 (£24) when it began its stock market floatation in May last year, valuing the social network at $104bn (£65.8bn), making it one of the most valuable share sales in US history at the time.

However, following technical glitches after listing on Nasdaq, Facebook’s shares fell to $18 (£11.7). They have since recovered and are currently valued at $41.29 (£26.54).

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