Christmas came early for Wall Street and investors as Twitter finally revealed the numbers behind the Tweets. The frenzy with which analysts and reporters tore into the data rivaled anything seen since the last Harry Potter book was released in 2007.
Even the most rabid financial analyst would concede the official Twitter IPO registration statement makes for slightly dry reading. To spare financial muggles the pain of going through the 180-page S-1 filing, here's a Cliffs Notes version of what investors need to know about the company as they gear up for the IPO expected sometime next month.
1. Twitter is selling $1 billion worth of stock in an IPO, which values the total company at $10 billion.
2. Facebook (FB) has a market cap of $123 billion, more than 12x the size of Twitter. For comparison's sake Google (GOOG) is worth $290 billion and online networking company LinkedIn (LNKD) has a market value of about $23 billion.
3. 75% of Twitter's active users sign in via smartphone or tablet.
4. Only 65% of Twitter's revenues come from mobile users. Mobile ads are worth less to advertisers than the those you see on your desktop. That's a problem for Twitter as more and more people go mobile.
5. Former CEO Eric Williams will be the biggest shareholder with a $1.2 billion stake. Twitter's 1,800 employees are about to get very wealthy. Co-founder Jack Dorsey's stake will be worth $470 million. Current CEO Dick Costolo has a relatively paltry stake worth an expected $160 million.Read More »from Twitter IPO Guide: What to Know Before You Buy the Hype