Twitter Files for IPO
Twitter has filed to go public, though potential investors will have to wait a bit to get a sense of its financials.
In a tweet, Twitter confirmed that it has filed a registration statement with the Securities and Exchange Commission.
"We've confidentially submitted an S-1 to the SEC for a planned IPO," Twitter said in its official feed. "This Tweet does not constitute an offer of any securities for sale."
It filed secretly, taking advantage of the Jump-Start Our Business Startups, or JOBS Act, which allows companies to get a low-profile review from regulators before selling shares.
Despite Twitter being well-known and much utilized – it has an estimated 400 million monthly users – the filing under the JOBS Act suggests the company booked less than $1 billion in revenue in its most recent fiscal year.
The JOBS Act was designed to help emerging companies avoid some of the harshest scrutiny when going public. Critics, though, have suggested such scrutiny is helpful as investors evaluate whether to put money into these companies.
It is unclear when Twitter will make its financial results public to potential investors, nor when it plans to actually sell its shares or at what valuation.
Ray Hennessey is the former editorial director of Entrepreneur.