Hollywood shows risk in Twitter business model, IPO in prospectus
In a prospectus filing on Thursday, Twitter Inc highlighted the risk involved should the company's influential users would wane. As a warning to potential investors in its upcoming public listing, Twitter said, "If users, including influential users, do not continue to contribute content to Twitter, and we are unable to provide users with valuable and timely content, our user base and user engagement may decline."
Twitter mentioned famous celebrities in its recent 234-page prospectus. The microblogging service featured American chef Mario Batalli providing cooking tips to a user alongside with UK musician Gavin Rossdale. Twitter also included tweets from the House of Windsor, President Barack Obama and National Basketball Association star Kevin Durant. Noticeably absent were prolific celebrity tweeters with massive followings - reality star Kim Kardashian, and singers Justin Bieber or Lady Gaga.
Twitter was aiming to raise USD1 billion in its upcoming IPO. The company's service has 218.3 million users monthly. It counts the Pope, Oprah Winfrey and Iran's president as its other trophy users.