Twitter Is Now Trading At $11 Billion On The Private Markets

Jack Dorsey on CNBC

Photo: CNBC

A new report by Greencrest Capital says Twitter is prepping for an IPO—not this year, but likely in 2014.That squares with what Twitter chairman Jack Dorsey told CNBC late last year: The company is getting ready for an initial public offering at a time of its choosing.

And Twitter recently upgraded its management, promoting CFO Ali Rowghani, a veteran of Pixar, to COO, and hiring away Zynga treasurer Mike Gupta to replace him.

While Twitter’s not yet public, its shares are traded on secondary markets. Based on recent trades, the company hit a notional valuation of $11 billion, Greencrest analyst Max Woolf told Forbes.

The company’s most recent financing, in 2011, valued the company at $8 billion. It subsequently rose to $10 billion in private trading, but fallout from the Facebook IPO knocked it back down below $9 billion last summer.

Because secondary markets are illiquid compared to public markets, these private valuations aren’t entirely predictive of a business’s future value as a public company. But consider this: 10 months ago, Facebook stock changed hands at $29.30 a share. It’s now at $28.

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