Twitter has finally announced plans to go public, though its formal filing was confidential, kicking off a frenzy of analysis, debating and, of course, tweeting over just how much the social-networking service is worth.
No one wants to see another Facebook (FB) debacle. Amid trading glitches and secret, negative analyst views, Facebook shares dropped below their initial price of $38 on the very first day and dropped below $19 in late 2012. The shares only regained the $38 level last month, 14 months after the IPO, and are now trading at around $44.
But the biggest problem with Facebook’s IPO may simply have been the overvalued stock price given the company’s financial future as it could be forecast at the time. A company surrounded by unanswered questions on its mobile-advertising strategy probably should not have been priced at an overall $100 billion valuation.
So how much is Twitter worth? According to a recent leak, hedge funds were offering to pay $28 per privately traded sharesRead More »from 3 Ways to Value Twitter’s IPO: From $20 Billion to Bust