Twitter IPO Update: Company Nabs $1 Billion

Updated S-1 also shows startup Twitter's acquiring is sizzling

   

Twitter filed another amended S-1, and it showed a couple notable updates about the upcoming Twitter IPO.

To start, Twitter has obtained a $1 billion credit line — which matures in Oct. 22, 2018 — from Goldman Sachs (GS), Morgan Stanley (MS), JP Morgan (JPM), Bank of America Merrill Lynch (BAC) and Deutsche Bank (DB). These firms are also underwriters on the public offering.

iStock 000005613071XSmall e1294848164445 Twitter IPO Update: Company Nabs $1 Billion
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Such a credit line is fairly normal for large dot-com transactions. Companies like Zynga (ZNGA) and Facebook (FB) also arranged similar financing before they went public. Why? Well, because M&A is a common practice for tech operators … so it helps to have some dry powder for deal-making.

Speaking of acquisitions, the amended S-1 also provided some interesting details on Twitter’s purchase of MoPub, operator of a mobile ad network. For the first half of this year, the business pulled in an impressive $6.5 million in revenue after only generating about $2.7 million in revenues for 2012.

Of course, the price tag for the deal was steep, coming to $350 million (all of it was in Twitter stock). But with Twitter’s focus on mobile advertising — which accounts for 70% of revenues — the company will certainly keep looking for deals that can help broaden its platform.

And it still looks like Twitter will launch its IPO on Nov. 15, with the Twitter IPO expected to raise over $1 billion. The company plans to list on the NYSE under the ticker TWTR.

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO StrategiesAll About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/ipo-playbook/new-twitter-s-1-company-nabs-1-billion/.

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