Did the Nasdaq Just Lose the Twitter IPO?


Source: http://www.flickr.com/photos/joshsemans/

Twitter will be listed on the New York Stock Exchange — operated by NYSE Euronext (NYSE:NYX) — and not the Nasdaq — operated by Nasdaq OMX Group (NASDAQ:NDAQ) — according to TheStreet. The social media platform, which tweeted about its confidential S-1 filing on September 12, is expected to sell between 50 and 55 million shares priced between $28 and $30, raising between $1.4 billion and $1.65 billion. Such a sale would value the company somewhere between $15 and $16 billion, higher than the $10 billion estimate that was tossed around a few months ago.

It’s not a perfect analogy, but initial public offerings are to Wall Street as blockbuster movies are to main street: a tremendous amount of hype typically surrounds both events. Marketers shift into a higher gear and promote their product — in one case, a movie; in the other, an investment — and would-be consumers digest the data, generate buzz, speculate, and ultimately make a decision.

Twitter is kind of a unique case, though. Company management has tried pretty hard to keep things calm, telling the Wall St. Journal in February that a Twitter IPO was “not necessarily inevitable.” This, of course, has now been turned on its head, and the atmosphere is thick with speculation and expectation.