Twitter execs showered attention by profit seeking Wall Street firms

October 30
2:27 PM 2013

During the visit of Twitter to New York last week, executives of JP Morgan Chase & Co had mingled outside their offices with jackets emblazoned with the logo of the microblogging site. Another financial institution, Morgan Stanley had the Times Square ticker flash "Welcome @ Twitter to @Morgan Stanley". Goldman achs had tweeted a photo the Twitter Logo taken at the firm's offices.

These are but small acts of appreciation, as these three banks stand to earn nearly USD37.2 million in fees as they were underwriting the Twitter IPO next week according to sources familiar with the tranaction. 

For the Twitter IPO, seven firms had been hired to sell the shares totalling USD1.6 billion and would earn USD49 million if the shares are sold at USD20 per share or if the shares meet the top part of the price range.

As lead underwriter, Goldman Sachs' fee would reach USD20 million for less than a day's work. Aside from this, there would be many other ways that Wall Street firms would be profiting from the IPO. 

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