Bloomberg: Twitter talking to banks about IPO

|By:, SA News Editor

Sources tell Bloomberg Twitter "has held preliminary talks" with banks about an IPO, and is waiting for its Q3 to close before deciding whether to file this year or next.

Om Malik's "quite well placed" sources tell him Twitter won't reach 400M active users this year, as CEO Dick Costolo had targeted. He also notes the potential of Twitter's new Facebook-like Conversations view, which makes discussions easier to follow, to reel in users who have thus far been turned away by its firehose-like feeds.

eMarketer recently predicted Twitter, privately valued at ~$10B, will produce $580M in 2013 revenue.

GSV Capital (GSVC +1.3%), which estimates its Twitter stake was worth $37.6M at the end of Q2 (it could be worth more now following Facebook's run-up), would definitely like to see the microblogging giant file an S-1 sooner rather than later.

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