The Union Recorder

Z_CNHI News Service

October 23, 2013

Twitter secures $1 billion credit line before initial share sale

SAN FRANCISCO — Twitter said it obtained a $1 billion credit facility this month, following the lead of other social media companies in accessing the debt market tied to an initial public offering.

In a regulatory filing Tuesday, Twitter also said MoPub Inc., an advertising startup that it's acquiring, recorded sales of $6.52 million in the first half of 2013, compared with $2.69 million for all of last year. The acquisition is scheduled to close in November, Twitter said in an updated prospectus with the Securities and Exchange Commission.

Twitter is mimicking Facebook and Zynga, which both obtained credit facilities in connection with their IPOs. Facebook received an $8 billion financing package before its 2012 offering, and Zynga secured a $1 billion line of credit from underwriters the previous year. Twitter could use the funding to help with acquisitions, said Michael Pachter, an analyst with Wedbush Securities Inc.

"It sounds like much, much more than they need to fund their operations." Pachter said. Twitter is planning to raise more than $1 billion in the IPO, according to people with knowledge of the process.

Twitter's Chief Financial Officer Mike Gupta previously helped take Zynga public.

The banks providing the credit line are also managing the IPO. They include lead underwriter Goldman Sachs Group Inc., which is providing $150 million, along with Morgan Stanley and JPMorgan Chase & Co., which are each contributing $250 million.

Other lenders include Bank of America Corp. and Deutsche Bank AG.

Twitter agreed last month to pay more than $300 million in stock for MoPub, the company's largest acquisition. The deal pushes Twitter deeper into mobile advertising, which accounts for 76 percent of monthly users and 70 percent of ad revenue. Using MoPub, Twitter will be able to extend its advertising across other mobile applications and add real-time bidding to its platform, so advertisers can automate purchases based on events, the company said in its prospectus.

Twitter's revenue more than doubled in the third quarter to $168.6 million from $82.3 million a year earlier, while its net loss expanded to $64.6 million from $21.6 million, according to an earlier filing. Twitter's average revenue per user in the latest quarter was 73 cents, based on its 231.7 million monthly active users, less than half of Facebook's $1.60 average monthly revenue per user.

MoPub, also based in San Francisco, has almost 100 employees worldwide, according to a blog post at the time of the transaction. The startup had a net loss of $2.83 million in the first six months of 2013 after losing $8.14 million for all of 2012.

1
Text Only
Z_CNHI News Service
  • Doctors to rate cost effectiveness of expensive cancer drugs

    The world's largest organization of cancer doctors plans to rate the cost effectiveness of expensive oncology drugs, and will urge physicians to use the ratings to discuss the costs with their patients.

    April 16, 2014

  • Low blood-sugar levels make for grousing spouses

    Husbands and wives reported being most unhappy with their spouses when their blood-sugar levels were lowest, usually at night, according to research released this week in the Proceedings of the National Academy of Sciences. Missing a meal, dieting or just being hungry may be the reason, researchers said.

    April 16, 2014

  • portraitoflotte.jpg VIDEO: From infant to teen in four minutes

    Dutch filmmaker Frans Hofmeester’s time lapse video of his daughter, Lotte — created by filming her every week from her birth until she turned 14 — has become a viral sensation.

    April 16, 2014 1 Photo

  • Victimized by the 'marriage penalty'

    In a few short months, I'll pass the milestone that every little girl dreams of: the day she swears - before family and God, in sickness and in health, all in the name of love - that she's willing to pay a much higher tax rate.

    April 15, 2014

  • Allergies are the real midlife crisis

    One of the biggest mysteries is why the disease comes and goes, and then comes and goes again. People tend to experience intense allergies between the ages of 5 and 16, then get a couple of decades off before the symptoms return in the 30s, only to diminish around retirement age.

    April 15, 2014

  • Lindley, Tom.jpg Wildcats aren't champs but we're all still watching Calipari

    Kentucky coach John Calipari is a college basketball phenom for his ability to knit together championship-caliber teams of freshmen. How long will Calipari's success last as other coaches catch on?

    April 15, 2014 1 Photo

  • treadmill-very-fast.jpg Tax deduction for a gym membership?

    April marks another tax season when millions of Americans will deduct expenses related to home ownership, children and education from their annual tax bill. These deductions exist because of their perceived value to society; they encourage behaviors that keep the wheels of the economy turning. So why shouldn't the tax code be revised to reward preventive health?

    April 15, 2014 1 Photo

  • Google acquires drone maker Titan Aerospace to spread Internet

    Google is adding drones to its fleets of robots and driverless cars.
    The Internet search company said it acquired Titan Aerospace, the maker of high-altitude, solar-powered satellites that provides customer access to data services around the world. Terms of the deal weren't disclosed.

    April 14, 2014

  • Why Facebook is getting into the banking game

    Who would want to use Facebook as a bank? That's the question that immediately arises from news that the social network intends to get into the electronic money business.

    April 14, 2014

  • Screen shot 2014-04-11 at 4.49.09 PM.png Train, entertain your pets with these 3 smartphone apps

    While they may not have thumbs to use the phone, pets can benefit from smartphone apps designed specifically for them.

    April 11, 2014 1 Photo

Poll
AP Video
Facebook
Twitter Updates
Follow us on twitter
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Stocks
NDN Video