McAlester News-Capital, McAlester, OK

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 | Photo Reprints
Z_CNHI News Service
  • HallofFameBraves.jpg Hall of Fame adds businesslike Braves, Frank Thomas, managers La Russa and Torre

    Atlanta Braves pitchers Greg Maddux and Tom Glavine, and their manager, Bobby Cox, dominated much of baseball during the 1990s. This weekend they went into the Hall of Fame together.

    July 27, 2014 1 Photo

  • Brother sues W.Va. senator over business loan

    U.S. Sen. Joe Manchin's brother claims he's owed $1.7 million that he loaned to keep a family carpet out of bankruptcy in the 1980s.

    July 25, 2014

  • How spy agencies keep their 'toys' from law enforcement

    A little over a decade ago, federal prosecutors used keystroke logging software to steal the encryption password of an alleged New Jersey mobster, Nicodemo Scarfo Jr., so they could get evidence from his computer to be used at his trial.

    July 25, 2014

  • Russia's war on McDonald's takes aim at the Filet-o-Fish

    Russia said earlier this week that it had no intention of answering Western sanctions by making it harder for Western companies to conduct business in Russia.
    But all bets are off, apparently, when you threaten the Russian waistline.

    July 25, 2014

  • cleaning supplies Don't judge mothers with messy homes

    I was building shelves in my garage when a neighbor girl, one of my 4-year-old daughter's friends, approached me and said, "I just saw in your house. It's pretty dirty. Norah's mommy needs to clean more."

    July 25, 2014 1 Photo

  • taylor.armerding.jpg Inequality crisis shot with factual problems, hypocrisy

    President Obama, various media and political liberals say inequality, of all things, is the defining issue of our times. Yet this message is delivered by multimillionaires and a president who jets from tee time to stump speech on the taxpayer's dime.
     

    July 25, 2014 1 Photo

  • Arizona's prolonged lethal injection is fourth in U.S. this year

    Arizona's execution of double-murderer Joseph Wood marked the fourth time this year that a state failed to dispatch a convict efficiently, according to the Constitution Project, a bipartisan legal group.3

    July 24, 2014

  • Police Brutality screen shot. Technology plays key part in battling police brutality (VIDEO)

    Allegations of police brutality are nothing new -- as long as there has been law enforcement, citizens have registered claims that some officers cross the line. But in the last few years, the claims of excessive force are being corroborated with new technology from cell phone cameras, police dash-cams and surveillance videos. 

    July 24, 2014 1 Photo

  • Lindley, Tom.jpg Better police needed for college teams enticed to cheat

    The NCAA once cracked down on colleges that went too far luring top prospects, then it targeted teams that lathered players with special treatment. That was until the NCAA's get-tough approach backfired, rendering it ineffective and creating an opportunity for those who want to play dirty.

    July 24, 2014 1 Photo

  • Facebook continues moneymaking trend

    Facebook seems to have figured out - for now at least - the holy grail for all media right now: how to make money selling mobile ads.

    July 24, 2014

Seasonal Content
AP Video
13 Struck by Lightning on Calif. Beach Baseball Hall of Famers Inducted Israel, Hamas Trade Fire Despite Truce in Gaza Italy's Nibali Set to Win First Tour De France Raw: Shipwrecked Concordia Completes Last Voyage Raw: Sea Turtle Hatchlings Emerge From Nest Raw: Massive Dust Storm Covers Phoenix 12-hour Cease-fire in Gaza Fighting Begins Raw: Bolivian Dancers Attempt to Break Record Raw: Israel, Palestine Supporters Rally in US Raw: Air Algerie Flight 5017 Wreckage Virginia Governor Tours Tornado Aftermath Judge Faces Heat Over Offer to Help Migrant Kids Kangaroo Goes Missing in Oklahoma More M17 Bodies Return, Sanctions on Russia Grow Raw: Deadly Tornado Hits Virginia Campground Ohio State Marching Band Chief Fired After Probe Raw: Big Rig Stuck in Illinois Swamp
NDN Video
Big Weekend For Atlanta Braves In Cooperstown - @TheBuzzeronFox Chapter Two: Becoming a first-time director What's Got Jack Black Freaking Out at Comic-Con? Doctors Remove 232 Teeth From Teen's Mouth Bradley Cooper Explains His Voice in 'Guardians of the Galaxy' Deja vu: Another NYPD officer choke-holding a suspect 'Fifty Shades of Grey': Watch the Super Sexy First Trailer Now! Reports: Ravens RB Ray Rice Suspended For 1st 2 Games Of The Season Air Algerie plane with 119 on board missing over Mali Diamond Stone, Malik Newman, Josh Jackson and others showcase talent Free Arturo - The World's Saddest Polar Bear A Look Back at Batman On Film Through The Years LeBron James -- Dropped $2k On Cupcake Apology ... Proceeds To Benefit Charity Snoop Dogg Says He Smoked Weed at the White House Raw: Fight Breaks Out in Ukraine Parliament Chris Pratt Interrupts Interview To French Braid Intern's Hair Shirtless Super Mario Balotelli Dances While Ironing - @TheBuzzeronFOX Whoa! Watch "Housewives" Star Do the Unthinkable LeBron apologizes to neighbors with cupcakes Justin Bieber In Calvin Klein Underwear Shoot
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.