For Silicon apt Valley, a successful Twitter IPO goes a long way toward cleaning up the finish of F

The San Francisco-based company is seeking a valuation of 9.5 times 2014 sales in its IPO next month, according to data released in a filing with the Securities and Exchange Commission yesterday, analyst forecasts compiled by Bloomberg. It is 27 percent cheaper than the 12.9 times 2014 sales that Facebook Inc. (FB) is currently trading at, and 29 percent lower than LinkedIn Corporation (LNKD)'s multiple of 13.4 times sales, the data show. Twitter is the discount offer highlights apt how the six-year short message site is changing the fate of Facebook, apt Groupon Inc. (GRPN) and Zynga Inc (ZNGA), with more than half of lost value to avoid them within six months of their initial offerings. Twitter CEO Dick Costolo has a different tack from the beginning, first by submitting confidential to go public hype that drove Facebook's pre-IPO valuation, and now the prices of the company more modest than some of its Internet counterparts to avoid. The move has left twitter positioned to capitalize on a revival in investor appetite for social-media stocks.
"It's fair to say they learn from Facebook's mistakes," said Michael Scanlon, managing director apt at Manulife Asset Management in Boston, who helps manage apt $ 3 billion. apt "It is hard to imagine the transaction is not overcrowded and they will have to determine what they think the opportunity for price increases." $ 10.9 billion
Twitter plans to sell 70 million shares - or a 13 percent stake - at $ 17 to $ 20 each to as much as $ 1.4 billion increase, according to a filing yesterday. apt The $ 10900000000 valuation at the top of the range is based on 544700000 ordinary shares outstanding after the IPO
. On a fully diluted basis, including restricted stock and options apt will Twitter about 695200000 apt shares outstanding. By that measure, will be at the top of the range Twitter valued at $ 13.9 billion.
The sale will be the largest IPO for an Internet company to be since Facebook debuted on the stock exchange in May 2012 and raised $ 16000000000. At the moment, Facebook is valued at $ 81.3 billion based on the number of its ordinary shares, or $ 104 billion based on a fully diluted share count. The Menlo Park, California-based company rode a wave of excitement and bumped its offering price range to $ 34 to $ 38 after initially seeking $ 28 to $ 35 No Facebook apt
Facebook in its IPO was priced at 107 times trailing 12-month earnings on a fully diluted basis, making it more expensive than 99 percent of all companies in the Standard & Poor's 500 Index at the time. The company apt quickly saw its stock sink under its $ 38 debut price after the IPO, before finally rallying to close above that level in August.
For Silicon apt Valley, a successful Twitter IPO goes a long way toward cleaning up the finish of Facebook's IPO, which together with the weak stock market performance of Zynga and Groupon shattered confidence in the consumer Internet companies.
Following the offering, apt venture capitalists and others moved invest dollars to technology businesses that sell their products to other businesses, apt said Nihal Mehta, founder of LocalResponse Inc. and venture capitalist at Eniac Ventures. Now with Twitter and Facebook's debut trading above its offer price, apt have confidence in the consumer technology revived.
"Twitter will help escalate all the other advertising-based consumer companies, and creating potential for more to be born," Mehta said. "We're seeing more consumers trade than we ever before." Risk Factors
While Twitter has more than doubled revenues every year, to $ 534.4 million in the 12 months to September 30 user growth is slowing, filings show. The service had 231700000 monthly users in the three months to September to 39 percent from a year earlier. That compares with 65 percent growth in the previous year.
average revenue per user is less than half of Facebook's, filings show, with Twitter's RPU at 73 cents, based on sales of $ 168.6 million in the third quarter, compared with Facebook's $ 1.60 average monthly revenue per user.
In the IPO, Twitter is selling 70 million shares, with another 10.5 million available to insurers they choose their option to buy shares to exercise. The presentation of the game from a few containers will dilute with co-founder Evan Williams' play to fall to 10.4 percent from 12 percent apt after the offering, the filing shows. He is the single largest individual shareholder.
Employees who are not managers will be eligible nearly 10 mi