- Accuracy in Media - https://www.aim.org -

Twitter tries to raise $1 Billion for IPO

WASHINGTON — Twitter, the social media microblogging service, is looking to hit the open market by filing an IPO (initial public offering).

twitter [1]Reuters reported [2] that the eight-year-old social media service is trying to lure investors with revenue growth when the service had not made a profit the past three years.

Its revenue tripled in 2012 to $316.9 million which was pushed by advertising, and in the first half of this year, its revenue hit $253.6 million yet posted a loss of $69.3 million. Per user, it earned 64 cents on the dollar on average while Facebook had around $1.60 according to Reuters estimates.

The company admitted that it is heavily reliant on advertising, which made up 87% of its revenues for the first half of this year 2013.

Facebook made a splash with its IPO [3] and its stock has fluctuated [4] over the past year as a result of inconsistent revenue and doubts among investors over its longterm viability.