Oct. 15, 2012
-- Howard Orloff is reaching out to Twitter's CEO, Mr. Costolo, in a bid to get him to change the way in which Twitter is invested in. Howard wants Twitter to not consider going through lawyers, investment banks and investors, but instead use a Crowd Funded IPO which will allow the general public to invest in the business. Howard claims that by going through typical procedures, Twitter will experience losses of over $150 million. Whereas going with a Crowd Funded IPO will reduce these costs greatly and allow the very users of the site to invest in the company.
Over the past several years, Twitter has grown to become king of the social media marketing world. Within mere months of the website's launch, it was predicted that Twitter would overtake Facebook in no time at all - and it couldn't be any truer. Facebook recently has noticed massive declines in stock prices and overall profits. Howard feels that if Twitter follow the same route that Facebook has, the site will ultimately demise and begin to deteriorate quickly. Twitter is a user-controlled site, and the popularity of the site is entirely down to the users which use it. The majority of Twitter's success has come from Celebrities using the site to keep in touch with their fans, family and friends.
Howard believes that an almost user-based run website should be kept within the public users interest. By going with a Crowd Funded IPO, average and typical users of the site will be able to invest and reap the profits as the company continues to expand. You can read Howard Orloff's full letter and his appeal to Mr. Costolo here:http://ipovillage.com/ipo-village-blog/open-letter-twitte...