The Twitter IPO Essay Example | Topics and Well Written Essays - 1250 words

The chitter IPO - act ExampleOne of the social media giants Facebook is also listed on Nasdaq but there be several reasons organism put forward by Twitter for such a stance. One of the most prominent reasons for Twitter to avoid Nasdaq is the not so successful IPO of the Facebook. As umpteen witnessed the glitches which made the Facebook suffer. There were many delays and technical problems. The systems of the Nasdaq did not go through well and it was a mess on the first daytime of the opening. The IPO is likely to take place late in 2013 or early 2014. The pundits are predicting figures preceding(prenominal) a billion dollars that is expected to bring in about for the social network website. There are several former(a) factors for such finis. The trend of tech companies is quite high and many are view of a potential listing. Twitter also considers this a great time when the trends are hot and face to avail such opportunity. A return of 28% has been recorded for tech IPOs th is year and is the second beat out after the 51% of the health sector as being reported by morning star. As Paul Brad, an analyst with Renaissance Capital states tech companies are maven of the strongest areas of the IPO market to date.2 such(prenominal) decision is also likely to welcome impact on the wide range of stakeholders of the Twitter. This could well be related to the Legitimacy Theory which states that transcriptions take bow of their social and external environment (Tilling). This could well be seen here as Twitter also follows the social norms, beliefs and values that are currently prevailing in the indusattempt. Many tech companies are trying to obtain listing. So does Twitter follow the footsteps of them and one of the influence or inspiration could be the IPO of the Facebook. The writer suggests that there are basically two levels of the guess one is institutional level which involves government and other bodies in a wider context and the other one is organizat ional level in which the companies such as Twitter falls (Tilling). At this level organizations try to seek approval from the society in pursuit of their own goals. However, if they succeed they remain in earthly concern otherwise they face dire consequences and fight for their survival. Once organizations expand and their operations become widely open and they get acceptance from the society, there comes another responsibility on them. This can be of relevance with the Stakeholder Theory. The opening suggests that the vary existence of organizations is to create value for their shareholders over time.3 If setting aside the other ethical obligations of an organization the core objectives of the organizations are to maximize the shareholders wealth. But then comes a range of stakeholders with different set of goals and expectations. It is the trading of the organizations to keep a balance between such stakeholders (Reynolds, Frank and David, 2006). Twitter here is also expanding its stakeholder on a large scale now. From previously, their main stakeholders were only the users of their website but now upon obtaining listing they will have the responsibility to serve a wide range of stakeholders. From shareholders to users to wider society at large. They will also be liable to some ethical practices and transparent disclosures. Latest acquisition of Staples In the latest news, it has been reported that the Staples has acquired Runa, a San Mateo, California based Start-up Company whose business is specialization and personalization in e-commerce technology.4 The biggest factor of such a decision was that Staples wanted to boost up its on-line sales in order to compete with Amazon and other tech advanced companies in the e-commerce space. The chairman and CEO of Staples, an office supplies