Fueling more speculation about a possible IPO next year, an analyst looking at trading in secondary markets says Twitter’s value is now north of $11 billion.
Max Wolff, an analyst with Greencrest, told Forbes that Twitter’s value is up since Facebook’s IPO 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 the publication.
The $11 billion figure reflects the growth in users and “new monetization efforts are both yielding fruit and pointing toward a good 2013 for Twitter,” Wolff added. Rumors of purchase by Apple are also boosting the numbers. The secondary market refers to the buying and selling of pre-existing investments in the company.
The SEC caps the number of investors at 499. Beyond that, a company is required to go public. Though Twitter’s valuation is far less than the $100 billion figure floated for the pre-IPO Facebook, Wolff concluded that Twitter ‘s valuation looks better than Facebook’s did when it went public.
The last figure circulated for Twitter’s valuation was $8 billion in July 2011. That amount was extrapolated by an $800 million round of funding that Twitter secured at the time. In December 2010, Twitter’s valuation was estimated at $3.7 billion.
Despite the growth of Twitter’s business — eMarketer estimates revenues for the company will hit $1 billion in 2014 — CEO Dick Costolo said as recently as September that the company has no plans to go public.
Twitter reps could not be reached for comment on the report.
Source: Mashable.com
You might also like
More from Twitter
Twitter Blue Subscribers Now Get Up To One Hour To Edit Their Tweets
Not only do Twitter Blue subscribers get to edit their tweets, but now they will have up to 60 minutes …
Twitter Now Publicly Shows Who You Are Paying To Subscribe To
Twitter added a "Subscriptions" button to the user profile that lets anyone see who you are paying to subscribe to. Ever …
Twitter Blue Verified Subscribers Can Now Upload 2-Hour Videos
It probably still won't convince you to sign up, but Twitter Blue subscribers can now upload videos up to 2 …
Twitter Launches Encrypted DMs, But Only For Paid Subscribers
To send an encrypted DM on Twitter, you will need to be a Twitter Blue verified user, a verified organization, …
Twitter Is Purging Old Inactive Accounts
The purge of old and inactive Twitter accounts could free up many long-coveted usernames. Musk says Twitter will be removing accounts …
Is Twitter Working On A Cheaper Verification Plan For Organizations?
Twitter is reportedly working on a cheaper alternative for organizations to get verified on its platform. Currently, the only available …
Twitter Will Offer Free API Access For Public Announcement Accounts
Twitter announced it will revert to making its API free to use for accounts posting public announcements such as weather alerts, …
Twitter Blue Checks Reappear When You Update Your Bio
Are you ready for the new episode of the Twitter Blue Checks saga? A bug makes them reappear when you …
Twitter Will Require All Advertisers To Be Verified
It seems Twitter has found yet one more way to force users into paying for verification: Advertising on the platform …
