Howard Lindzon has decided to stir the proverbial IPO pot by starting a blatant, outrageous, poke-you-in-the-ribs rumor that Twitter is going to do an IPO.
His motivation is a desire to see the IPO market jump-started, and he figures Twitter is the perfect candidate given its popularity and high-profile.
Even though Twitter has yet to make any revenue, you have to believe an IPO would be a gazillion times over-sold because it’s a story that investors love even if the fundamentals make no sense. Greed trumps rationality so Twitter would be a smash hit, and perhaps spark the IPO market for a little while.
Truth be told, the dot-com bubble bursting in 2001 probably did little to teach investors anything about overly excited about companies with no revenue.
One Comment
Have to disagree with you Mark. Non-VC investors are over the "no revenue" Web 2.0 biz. eBay bombed with Skype, Google bombed with YouTube and MSFT isn't doing so well with their Facebook investment.
Would a Twitter IPO attract curiosity? Yes. Serious money? No.
Regards,
George