Tomahawk, WI 10/07/2013 (BasicsMedia) – It is not a hidden secret anymore that when talking about social media networks, they don’t come any bigger than Twitter Inc or Facebook Inc. The latter has already carried out its IPO which it did in 2012, although the results were not anywhere near what Facebook had expected. Now, it emerges that Twitter has also filed its intentions to go public in 2013, and this remains the most anticipated IPO of this year. However, there are certain things which Twitter will have to do differently from Facebook if it hopes to achieve a more different result to the latter.

 There are certain risks which Twitter has to be aware of as it proceeds with its intention to go public. Once it successfully goes public, it can’t expect to do the same things it has always done without attracting a lot of attention. The company has obligations to shareholders and Wall Street which it will have to serve with diligence. This will be quite different from the way it has been operating all along where it has only been answerable to itself. It will need to look at ways of raising more revenue through its ad business, perhaps more than it has ever done thus far.

The key for Twitter going forward would be to show that it is worth the implied value of $12.8 billion. Its IPO is thought to be valued at only $1 billion. Maybe this is where it has already learnt from the mistakes made by FB last year during its own IPO. Twitter Inc would like to raise $1 billion through this IPO. It may be able to achieve this goal but that would only be the first of many challenging tasks. Facebook succeeded in raising last year during its own IPO. What followed afterwards caused a lot of despair within the company as well as Wall Street.

 During the first six months of 2013, the company successfully raised revenues totaling $253.6 million. This is not bad, and is a good indicator that the $1 billion it seeks to raise through its IPO is quite manageable. Twitter will have to start thinking of ways in which they can start experiencing real growth all over the world. Just like Facebook, they will need to prove that they are ready to try something entirely new and out of what the industry have come to expect. The latter showed it was willing to try out the new when it entered the world of mobile ad with gusto.

 Twitter’s impending IPO will be a major test for investors. They haven’t experienced the best of times with their investments in Zynga, Facebook and Groupon. Are they prepared to try their luck with Twitter? This is what remains to be seen. All the three stocks mentioned here plunged after going public, and there is real possibility that Twitter could follow suit. If Twitter is to go through a much better experience compared to Facebook and the other three, it has to learn from the rest and avoid mistakes which were made by the others during their respective IPOs.

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