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Here are the secret edits Twitter made to its IPO filing, hoping investors wouldn’t notice

Twitter has been twittering around with it's IPO prospectus. 

Here are the secret edits Twitter made to its IPO filing, hoping investors wouldn’t notice

By Zachary M. Seward, Quartz

Excerpt:

But Twitter was able to avoid much of that attention by invoking a new law, called the JOBS Act, that allows companies with less than $1 billion in annual revenue to get feedback on their IPO filings in confidence. The law requires that Twitter ultimately disclose its earlier drafts, which it did yesterday soon after the official S-1 was revealed, but because they aren’t filed piecemeal, they won’t generate headlines—like, say, this one, from last year: “Facebook Amends IPO S-1 To Admit Advertising Biz Hurt By Increasing Shift To Mobile.”

If Twitter weren’t able to edit its IPO prospectus in secret, its various amendments might have led to headlines such as:

  • Twitter admits its ad rates are falling—and it might not stop
  • New risk to Twitter IPO: Mobile users aren’t as lucrative
  • 5% of Twitter’s users aren’t real, company confesses in new filing

Alas, all of those changes happened quietly, instead, which was exactly Twitter’s intention in using the JOBS Act. It’s hoping to avoid the kind of overheated anticipation that have tripped up other IPOs by technology companies.

Twitter submitted its first draft to the SEC on July 12, and managed to keep that a secret until the company itself revealed what it was up to on September 12. It continued to edit the document until the official filing yesterday, October 3. Twitter will make at least one more amendment before its IPO because it has to fill in a few blanks, including the stock exchange on which the company will list it shares…

The photo above is from Twitter’s new headquarters. By Scott Beale/Laughing Squid and used under a Creative Commons license.

Full article: Here are the secret edits Twitter made to its IPO filing, hoping investors wouldn’t notice – Quartz.

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