Back in July 2011, a lifetime ago in the fantastically volatile world of business tech, Twitter was valued at $7 billion, and, just a couple of weeks later, $8 billion, following two rounds of private funding.
In September of that year, CEO Dick Costolo told reporters not to expect a Twitter IPO anytime soon. “We now have what can only be referred to as a truckload of money in the bank. We did that because we want to be in control of our destiny and grow the company the way we want to,” he said.
Fair enough. But 16 months is an eternity in the business world, certainly in tech, and with a string of new management hires, and a new report suggesting Twitter is now worth more than $11 billion, that IPO might be just around the corner.
This valuation comes courtesy of Greencrest Capital, a firm that specialises in the pricing of businesses that are expected to go public. Determining an exact value for Twitter is problematic, but a rough estimate can be calculated by looking at the price of the company’s shares in the online secondary markets.
“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,” says Greencrest’s Max Wolff. “That said, Twitter is up since the Facebook IPO and is now valued at northward of $11B. This makes sense as growth in users and new monetization efforts are both yielding fruit and pointing toward a good 2013 for Twitter.”
Wolff notes that continuing speculation of a Twitter acquisition by Apple adds a premium to this price, but that, overall, Twitter today looks better than Facebook did when it went public.
Greencrest concluded that Twitter will likely begin preparations for its IPO later this year, finally going public in 2014.