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Social media IPO news: Social media is the number one online activity today. It connects more people online than ever before – and even the elderly are getting into this trend. In 2010, the number of people aged 65 and above on social media grew by more than 100%.
Social media companies can also be profitable for shareholders. Keeping up with social media IPO news is important because it gives investors an idea of the financial health of this market.
Here is a comprehensive overview of the latest in social media IPO news…
Social Media IPO News: Twitter (NYSE: TWTR)
Twitter reported a sales figure of about $243 billion in the fourth quarter 2013. This is double the sales figure reported for the same quarter last year. Market analysts remain skeptical despite TWTR's remarkable rise in sales.
That's because projections for sales figure in the current quarter remain at between $230 and $240 million. A drop in sales during this quarter would be the first time that Twitter's sales experienced a drop since it began to announce its earnings publicly (Twitter's initial public offering was in November 2013).
Such a drop feeds into fears that Twitter's growth is slowly declining. Twitter also announced that its timeline views in the last quarter had dropped from 159 billion views to 148 billion views.
The two diminishing values paint a grim picture of Twitter's future, and they're likely why Twitter's share price fell more than 29% since the beginning of February.
Social Media IPO News: Weibo Corp. (Nasdaq: WB)
China is the world's second largest economy. It is also home to one of the largest social networking sites in the world – Weibo.
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Weibo is a micro blogging site that has more than 130 million users. It is planning to launch an IPO on the U.S. stock market through the Nasdaq exchange sometime this week (the week of April 14, 2014). The social media giant submitted its regulatory filings in March and plans to offer 20 million shares to the public at a price of $19 per share. This share pricing means that the company values itself at close to $4 billion.
Social Media IPO News: A Potential Foursquare Labs IPO
Internet users have dubbed Foursquare a check-in app because they mainly use it to declare their locations at any given time. Foursquare is now increasing value for its advertisers via its vast data on preferred user locations and a self-serve platform for advertisers.
Foursquare's efforts have caught the attention of Microsoft Corp. (Nasdaq: MSFT) and American Express Co. (NYSE: AXP) – both companies have expressed an interest in owning Foursquare. And Yahoo! Inc. (Nasdaq: YHOO) recently said it wants to buy the company for an impressive $125 million.
But it seems as though Dennis Crowley, the founder and CEO of Foursquare, is gearing up for something bigger. He does not want to sell Foursquare as fast as he sold Dodgeball, one of his earlier start-ups, to Google for a speculated $10 million according to the Business Insider. Crowley has publicly stated that regrets Dodgeball deal, a likely reason why he is holding off on offers to buy Foursquare. Analysts such as Rocco Pendola of MSN Money predict that Crowley may instead choose to raise capital for expanding Foursquare through an IPO.
Social Media IPO News: A Potential Spotify IPO
Rumors have Spotify, a music streaming service, trying to expand its reach and diversify its product portfolio. It can do this by raising capital through an IPO. It recently received a credit line of $200 million from various banks. Sources quoted by Quartz indicate that this search for capital could culminate in an IPO as early as this fall.
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- Financial Times
- Business Insider
- MSN Money