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Twitter IPO valued at Modest $11 Billion

WASHINGTON — Twitter, trying to avoid the same fate as Facebook when it had its initial public offering (IPO), valued its initial public offering at a relatively modest $11 billion.

twitter 2 [1]Reuters reported [2] that Twitter plans to sell shares valued between $17-20 apiece.

Twitter tried to raise over $1 billion [3] for its IPO, and it was successful. But, there are concerns over the high inactivity rate of many of its users, which Reuters says it could be as high as 36% [4].

Twitter is a social media messaging site and is trying to prove to investors that it is sustainable, especially its advertising revenue model. Facebook struggled after its IPO but recently soared past their original share price [5] this year.