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Twitter’s Valuation Hits $11 Billion

Greencrest report says 2014 IPO likely, but ...


Social media favorite Twitter is now worth about $11 billion, according to a recent report from Greencrest that cites recent trades on secondary markets, where investors can buy shares in privately held companies.

Twitter’s financing in July 2011 came at around an $8 billion valuation, so it’s clear the company is gaining some nice momentum behind a possible IPO, which the report indicates could happen in 2014.

It certainly helps that Twitter has been getting more aggressive with monetization, and the platform is ideal for mobile devices since it is based on tiny messages and links.

And concerning a possible IPO, Twitter is getting its organization into shape. To this end, it has been bolstering its executive ranks, as well as striking key partnerships, such as with Pinterest.

Contrary to the report, I still think an offering is a real possibility for 2013 — especially if the broader markets remain bullish and Facebook‘s (NASDAQ:FB) rally continues. Not to mention, it would be easier to gin up attention for an IPO this year considering how unlikely we are to see other social mega-deals hit the markets.

And while the notion often has been pooh-poohed, buzz that Apple (NASDAQ:AAPL) might ever buy Twitter might be another boost to the odds of an IPO coming sooner rather than later. By fetching a strong valuation in the public markets, Apple would have to pay an even higher premium to snap up the company.

Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.”  Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.

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