Dive Brief:
- Twitter aimed to make its confidential filing for an IPO public this week (it's announcement via tweet last month only signified the beginning of the process), with hopes of trading shares by Thanksgiving, but the government shutdown will slow the process considerably.
- Due to the shutdown's impact on the U.S. Securities and Exchange Commission (SEC), a company like Twitter, which is near the end of the IPO process, could be seriously delayed.
- Twitter isn't the only tech company to experience hiccups in the IPO process in recent years—Facebook was stalled by NASDAQ on its opening day and Groupon was charged with misleading investors.
Dive Insight:
A brief shutdown could mean only a minimal delay for Twitter's IPO, but if it lasts longer, the damage could be considerable. The IPO process is long and difficult, so any hiccups are frustrating. The biggest effect the shutdown may have is on stock prices across the board, which will, of course, affect Twitter's opening price tag.