Twitter Announces Share Price Range For IPO

Twitter announced late Thursday that share prices for its hotly anticipated initial public offering will be between $17 and $20. This is far less than what many analysts were predicting the social media site would list for. With 70 million shares up for sale, the offering should raise about $1.4 billion. According to The Wall Street Journal, this would value Twitter at about $11 billion total.

STEVE INSKEEP, HOST:

NPR's business news starts with the price of a tweet.

(SOUNDBITE OF MUSIC)

INSKEEP: Twitter announced late yesterday that share prices for its hotly anticipated initial public offering will be between 17 and $20, far less than what many analysts were predicting the social media site would list for. With 70 million shares up for sale, the offering should raise about $1.4 billion. And according to The Wall Street Journal, this would value Twitter at about $11 billion total.

May sound like a lot but its small fraction of the current market value of Facebook, for example. The lower price may signal that Twitter wants to avoid the share price dip that came after Facebook's IPO last spring.

Copyright © 2013 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR’s programming is the audio.

Comments

 

Please keep your community civil. All comments must follow the NPR.org Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.