Popular micro-blogging site, Twitter, is not feeling any pressure to go public or set itself up for sale.
Twitter CEO Dick Costolo made the announcement this week in an interview with CNBC.
Costolo added that investors are fine with the way things are going for the company, but more importantly, Twitter is enjoying not feeling any pressure from outside regulators.
Twitter is mostly trying to avoid the debacle faced by other equally popular names after deciding to go public. Facebook is still reeling from the negative backlash following its disappointing stock performance.
Tech giants Zynga and Groupon suffered fates similar to Facebook. Fortunately, LinkedIn and Trulia managed to dodge the same potholes. Both have done rather well with their public debuts.
Facebook’s problems started after CEO Mark Zuckerberg took the popular social media sites, reluctantly, to public. Mounting pressure from employees in addition to reaching the 500 shareholder limit for private corporations prompted young Zuckerberg to finally yield.
Twitter is enjoying the same celebrity status with the equally popular Facebook. The microblogging giant is biding its time until its ready and not before.
Twitter is doing the right thing according to Andreas Scherer, managing partner at Salto Partners.
“Twitter doesn’t need the money — it has enough cash in the bank. It also doesn’t need the headaches that come with launching an IPO and being a public company.”
Scherer believes Costolo is doing the right thing focusing on the company’s chief goal of building a better ad platform for its advertisers.