Management changes at Twitter last week sparked speculation by investors over a potential 2013 IPO for the company Wednesday.
Zynga and Groupon struggled after they went public in late 2011, and perhaps most famously, Facebook’s IPO disaster in May of 2012 sent a shudder through investor confidence in the viability of social media companies.
Twitter’s projected 2013 advertisement revenues topping $1 billion, in addition to the management changes, are attractive signals for investors looking to take a company public in a market not traditionally kind to social media companies, reported Yahoo Finance.
Michael Fowlkes, writer for MarketIntelligenceCenter.com, wrote that even though it is possible for Twitter to go public in 2013, the company would likely fare better if it waited until 2014.
Eric Jackson of IronFire Capitol told Yahoo Finance that although Twitter’s success with mobile advertisements suggests it could be a good candidate for an IPO, it should also consider a buyout as a better option, due to the difficulty with making money through mobile ads.
“I think Apple would want to own them, not for an ad revenue stream, but for this knowledge graph they would be able to understand about their users,” he said. “That’s really interesting for people like Nielsen — we saw them do a deal with Twitter recently.”