Twitter Tweets Intentions to Go Public

Users of the social network have expressed excitement, concern over the new direction of Twitter.
10:40 | 09/13/13

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Transcript for Twitter Tweets Intentions to Go Public
This is a special report from ABC news. I'm -- -- -- New York with a CBC news digital special report. Twitter is going public for social sites -- -- the news late Thursday and investors are buzzing or. Should we say chirping about its potential. -- even as the markets debate potential prizes and valuations. Twitter is users are asking. What's the site gonna look like as it's gonna start chasing profits for its stockholders. Potential stockholders that is of course right now. I want to bring an ABC news tech editor Joanna stern and Yahoo! finance Jeff MacKey Jeff good morning to you wanna start -- you -- into Joanna because. There's a lot of details that -- -- we're going to be wondering about if it's gonna change that 140 character limitation but first the confidential filing with the SEC. Why. Well via the jobs act -- bill signed to encourage small businesses. Companies can -- to go public without saying a work without all have to do Twitter tweet about took less than a 140 characters they said -- filing a confidential as one and process of doing an IPO. That was it we don't know any data on their revenues -- users -- we know nothing and that's all I have to tell -- police what's the encouragement for a company to do that. Well it got a lot of money why -- they keep it private because they -- they don't want anyone in their business they've dialect to keep these things secret as long as possible. If they're under a billion dollars revenue which Twitter is. They don't have to give away any trade secrets and the other thing they get you down. They don't have to go public at this point and they can still be in the auction process the company can stay private. They get to really whatever they want all the what this does is just to set the wheels in motion and get -- -- all a Twitter if you will. Over -- I feel it's pretty exciting stuff. This is certainly says about the hype IC is contagious so what if anything then gives you pause about getting excited about this. Well you know we we have the FaceBook potential here and Facebook's wrong this can't be understated because remember a year ago with the debacle that was the FaceBook IPO. Everyone was wondering whether or not mobile advertising was a real business not FaceBook about a month ago proved that it is they made a ton of money -- mobile labs. And that really set the stage for this Twitter IPO so we know the business model will work. We know that that they won't have to change the model all that much Twitter has access to a ton of information. Did -- -- -- -- America's sweetheart on Twitter. So they think Twitter knows that they know that you or higher are in communication together Twitter -- is that Mike himself targeted advertising things that we would like -- you -- -- -- wanted to go viable wagons -- to gather Twitter know that make it sell it to us. America's sweethearts somewhat debatable I don't know -- -- can -- just that but we're gonna work on that but but but the bigger question is though. If FaceBook is able to capitalize on that with mobile -- is Twitter going to be -- successful meaning it if -- out there and sitting. Looking at possibly in the some one of these tech companies do what makes Twitter more appetizing than FaceBook. Well you know. I don't want people to be chastened SI PO because again we know nothing about what the company's got to do what they plan to do. But here is why could be more valuable FaceBook knows who you pretend to be FaceBook knows who -- -- bond is who you kind of act like people he went to high school with. Twitter post that we actually talked you. Where -- -- people who were in your network clear listening to -- really influenced by that's incredibly valuable information and -- Twitter as a business model. They're simply going to be trying to. To incorporate advertising and that -- model and is in the -- of the mosque away as possible and so an apple scored on in your Twitter feed. It'll go -- very select audience people who might be interest and data recorder service. And there are going to be all the parts aberration in a much more about -- FaceBook does because they know the people are talking to day after day incredibly valuable information for users. And Twitter people who -- -- -- should be encouraged by the fact that it's not their best interest. To make a system that is could inundate you with acts twitters entire goal will be to incorporate ads. Without overwhelming use and putting them off and so really the user's permission change all that much models not broken supporters not to try to fix it. Are -- I want to talk about how to sausages made in just a minute to talk more specifically about the road show get -- that. Nitty gritty of that but I want to bring in Joanna that -- and just continue wallet that you -- so what. Our users -- expect might possibly change to Twitter now to discuss her chasing. Potential investors. Yeah I think Jeff hit that -- -- -- -- and talking about advertising -- the advertising is definitely going to be the focus it's been the focus for Twitter. And I think we're gonna see more -- but I don't think we'll see it in a really obnoxious way. And he also really talked about the mobile impact right FaceBook had to make that point twitters got to make that point to and I think we're gonna see a lot of improvements in mobile. I think -- got a lot with its mobile apps they've made them more friendly. I think -- gonna go even further and their reports are ready The New Yorker had an exclusive they're talking about an improved iPhone app coming soon one that goes. Different direction that what they have now making it easier and -- -- changes to the user experience are -- on mobile they've added this blue line lots of people were kind of talking about that are tweeting about that a couple of weeks ago what's his blue line submit their done some small tweaks to the mobile experience also the desktop experience to. Increase that sort of engagement. But I think also to increase that advertising or -- to kind of see where people are cutting more. So from America's sweetheart MacKey to an actual sweetheart -- I want to ask you then how what what is the potential difference than for the user interface from FaceBook to Twitter that this -- you know we're talking about how. How you're building your own kind of personality and sharing online. Yeah I mean and I think Jeff said the same thing in the sense that. I don't think they're going to change the format of the user experience you're not going to be your -- to fix what isn't broken right. People -- that experience they -- that stream. But they are sort of toying around with different ways of back -- of that stream right so they added that blue line could they add some other things to make it. To intersect the advertising if you are talking about something. Could they put in. -- the hash tag or something along those lines to get you to join and different conversation. I think we might see things along that route. I think also we've seen Twitter trying to get into different medium models right. -- released an app a couple of months ago I don't know how many people actually using it which is this Twitter music app trying to get people to chat more about music drive sales to music. I think they might do the same thing over -- -- gonna do the same thing in the video arena. Ken lay in -- video more can't get more advertising around that -- trying to build out Twitter as. More about media company really think that's where FaceBook differs in and -- talked about that is why I mean this -- more of a place where people are going to chat about certain top acts. In in the same that people go to the new -- and read about certain topics so if the world's conversation is happening in this space how can Twitter take advantage of that. So Jeff -- kind of expanding on a much -- -- is talking about where other potential areas for Twitter for growth. Well you know it's they haven't begun to tap what they do as she said you know this is America's new speed ally I -- an investor at a hedge fund. The pay thousands of dollars for new -- that have now been obviate it by Twitter by just by following people the financial community Wall Street is just largely selling -- as much people gossiping with one another. They are breaking stories on Twitter far before they did they get to the news quarters inject itself. In the news cycle between the event. And what you see happening on the newscast on the broadcast because it its social media it's truly the the power of the masses. Twitter has not begun to exploit that market for all its worth in terms of the about money they can make. And it it's just a fascinating business model in that sense. FaceBook on the other -- much more -- -- on FaceBook whenever you kind of want to but when you're watching the super ball league on Twitter you tweet about it. When you're watching a program America's shares out of bats together and so is the advertising model ships from a more passively sit back and you -- -- commercial into a show. -- able to make it more active process because -- -- something the Boston bombing for instance. When that happened people went to Twitter to find out what was happening right away was that information filtered and cracked. No not at all that's -- the newscast comes in but if you want something -- thirty -- right away that sense of immediacy that's where you go for Twitter. And in terms of how they change -- all they have to do start putting a few ads and map. And and they haven't begun to explore how much money they can make office. Raw dirty and right away I don't know that that's going to be the next tag -- for Twitter but never -- But could very -- I actually get straight what the about a man that's why America so we had -- -- that the fate of supply could be America's sweetheart Joanna. At a party point US -- -- were an organ a different hash tag -- a little friendly political agenda for -- -- -- wanted to ask you about soccer first week. Essentially saying that you know what lesson learned from his company's IPO insane you know -- the market might not be ready but essentially hanging in there when what are your thoughts on his reaction. In terms of the IPO you know -- -- he actually came out any he was talking about his own idea on -- that he was really skeptical of the market may not be -- skeptical of sort of you know what. He also -- set of his own company was afraid of doing IPO because the impact it would have on employees. And the impact it would have on operations and he's changed his -- he's done a 180 on -- says it's made FaceBook a much more disciplined company and shareholders. Finally at long last are being rewarded by buying stock in FaceBook and as I said that pave the way as the weather -- October sky by Twitter. Who knows but as -- is concerned it's it was good for the goose to go public and so I would guess Twitter being began her in this case will be -- -- -- as well. Joanna what do you think mayor -- appropriates. I think you know one thing I did what -- -- is that -- look at the user base FaceBook has a much larger user base right there over a billion users. Twitter doesn't have that -- they do not have that side there -- back in their last number is 200 million active users. So I think when you look at the -- they have less -- there's a lesson in that in. To jeopardized in that sense but it also have to look here at how -- they grow the user base and I think that's where -- where I was talking about before enhancing the user experience making it easier to get into Twitter get into those conversations. That's right see some impact coming as well all right it's like -- -- time Joanna -- -- handle. Joanna stern are right now America's sweetheart I'm going to change colleagues. It's hard to take them and see that Jeff MacKey. All right Jeff -- -- -- thank you both very much certainly appreciate that of course have a complete write up an abcnews.com in the latest. For the potential rollout for twitters IPO for now I'm Dan -- -- New York with this ABC news digital special report. This has been a special report from me.

This transcript has been automatically generated and may not be 100% accurate.

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