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October 2, 2013

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Mays Business School

On September 11, Twitter announced (through a tweet, naturally) it is considering an initial public offering. This announcement recalled memories of Facebook’s recent IPO, along with similar questions. Is this the beginning of another tech bubble? How does the market value social media enterprises? What impact will public company status have on an entrepreneurial venture? Will the demand for shares create a frenzy that causes technical market glitches on the first day of trading? However, one additional question will be raised that Facebook did not face: How profitable is Twitter?