The Edmond Sun

Business

October 23, 2013

Twitter secures $1 billion credit line before initial share sale

SAN FRANCISCO — Twitter said it obtained a $1 billion credit facility this month, following the lead of other social media companies in accessing the debt market tied to an initial public offering.

In a regulatory filing Tuesday, Twitter also said MoPub Inc., an advertising startup that it's acquiring, recorded sales of $6.52 million in the first half of 2013, compared with $2.69 million for all of last year. The acquisition is scheduled to close in November, Twitter said in an updated prospectus with the Securities and Exchange Commission.

Twitter is mimicking Facebook and Zynga, which both obtained credit facilities in connection with their IPOs. Facebook received an $8 billion financing package before its 2012 offering, and Zynga secured a $1 billion line of credit from underwriters the previous year. Twitter could use the funding to help with acquisitions, said Michael Pachter, an analyst with Wedbush Securities Inc.

"It sounds like much, much more than they need to fund their operations." Pachter said. Twitter is planning to raise more than $1 billion in the IPO, according to people with knowledge of the process.

Twitter's Chief Financial Officer Mike Gupta previously helped take Zynga public.

The banks providing the credit line are also managing the IPO. They include lead underwriter Goldman Sachs Group Inc., which is providing $150 million, along with Morgan Stanley and JPMorgan Chase & Co., which are each contributing $250 million.

Other lenders include Bank of America Corp. and Deutsche Bank AG.

Twitter agreed last month to pay more than $300 million in stock for MoPub, the company's largest acquisition. The deal pushes Twitter deeper into mobile advertising, which accounts for 76 percent of monthly users and 70 percent of ad revenue. Using MoPub, Twitter will be able to extend its advertising across other mobile applications and add real-time bidding to its platform, so advertisers can automate purchases based on events, the company said in its prospectus.

Twitter's revenue more than doubled in the third quarter to $168.6 million from $82.3 million a year earlier, while its net loss expanded to $64.6 million from $21.6 million, according to an earlier filing. Twitter's average revenue per user in the latest quarter was 73 cents, based on its 231.7 million monthly active users, less than half of Facebook's $1.60 average monthly revenue per user.

MoPub, also based in San Francisco, has almost 100 employees worldwide, according to a blog post at the time of the transaction. The startup had a net loss of $2.83 million in the first six months of 2013 after losing $8.14 million for all of 2012.

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  • A Q&A on ‘Obamacare’ Court Rulings

    On Tuesday, two federal appeals courts issued conflicting rulings on the legality of tax subsidies being provided to people who bought “Obamacare” health insurance policies in Oklahoma and 35 other states.
    Here’s a look at the rulings’ potential impact in Oklahoma.

    Q: I’m confused. What did the courts rule today?
    A: A three-judge panel of the U.S. Court of Appeals circuit in Washington, D.C., decided that the government can’t provide tax subsidies for Affordable Care Act plans purchased in 36 states where the federal government is operating the health insurance exchange. Oklahoma is one of the 36 states. A few hours later, the U.S. Court of Appeals circuit in Richmond, Va., issued a conflicting ruling that upheld the legality of the health-care law’s tax subsidies.

    July 22, 2014

  • June healthy month for Oklahoma jobs

    Nearly 10,000 new jobs in Oklahoma were created in June, according to the U.S. Labor Department.
    Gov. Mary Fallin said Tuesday the state experienced one of the largest increases in employment in the nation in June. More than 9,600 additional people joined the state’s workforce in June.
    The unemployment rate in June dropped to 4.5 percent, its lowest ratio in six years. June’s rate was down a percentage point from 4.6 percent in May and April, according to the Oklahoma Employment Security Commission.

    July 22, 2014

  • UCO campus 3.jpg University of Central Oklahoma recognized as having friendly work environment

    The Chronicle of Higher Education named the University of Central Oklahoma as one of the “2014 Great Colleges to Work For.” Central is the only higher education institution in the state recognized on the list and one of only a handful of institutions in the nation given the distinction of being named to the Honor Roll for being cited most often among all the recognition categories.          
    Central joins Duke, Baylor and Notre Dame on the list of the 10 universities named to the large institution honor roll.

    July 21, 2014 1 Photo

  • Council approves funds toward ADA update

    City Council members have approved a $398,800 professional services contract with Accessology, a McKinney, Texas, firm, to establish an Americans With Disabilities Act transition plan for the city.
    Title II of the ADA requires state and local governments to make their programs and services accessible to persons with disabilities. It includes access to government facilities, programs and events and relevant policy changes.
    Accessology was selected out of a pool of five finalists by a five-member committee to create Edmond’s plan. The firm will partner with Kimley-Horn and Associates, a design consulting firm located in North Carolina.
    Edmond’s last ADA transition plan was created in 1992.

    July 21, 2014

  • Panel approves jail services agreement

    City Council members have approved renewal of the city’s jail services agreement with Oklahoma County for prisoners incarcerated at the county jail on city charges.
    The current annual agreement expired June 30. It provides the feeding, care, housing and upkeep of said prisoners. Edmond uses the county jail when the city jail is at capacity.
    The sheriff’s office proposed a slight increase from $46.25 to a $46.50 daily rate per prisoner. City staff said the current agreement is working satisfactorily and believe the proposed rate is reasonable. The new agreement took effect July 1. The city can hold prisoners in its current jail  up to 10 days; a new jail with 10 male and five female cells will be available inside the new Public Safety Center next year when the facility opens.

    July 21, 2014

  • Panel establishes 911 phone rate

    City Council members have established the rate for the 911 emergency phone service fee for calendar year 2015
    Council members set the rate at 3 percent of the recurring charges as designated by the tariff for exchange telephone service or its equivalent within Edmond beginning Jan. 1, 2015.
    Fees collected by wireless and voice over Internet protocol companies are established under a separate statute. To continue collection of the locally authorized service fee on landline phone bills, local governments must approve a resolution on an annual basis to set the actual fee.
    Governments must also through the Association of Central Oklahoma Governments notify the appropriate incumbent local exchange carrier and competitive local exchange carrier phone companies by Sept. 1, 2015.
    ACOG recommended for calendar year 2015 to maintain service fees at their current level of 3 percent.

    July 21, 2014

  • Council approves $2.5M extra for utility

    City Council members have approved the transfer of a $2.5 million appropriation for Edmond Electric.
    The action was needed due to higher natural gas prices. Those increased prices caused wholesale electric purchase costs to exceed the department’s budget estimates for Fiscal Year 2013-14. To cover the increased costs, a transfer of funds from the “Transfers” category to the “Other Services and Charges” category was necessary.
    It will maintain state law requirements and not increase Edmond Electric’s budget.
    The action occurred during Monday’s meeting and was approved unanimously.

    July 21, 2014

  • The Escape Edmond entrepreneurs sleuth their way to success

    Tripadvisor.com led Andrew Gipson to an industrial complex outside of Dublin, Ireland, about a year ago. The recent University of Central Oklahoma graduate was in the midst of an extended stay in Australia and the United Kingdom when he walked through the doors of XIT Live Escape Adventure Game. According to Tripdadvisor, it was the top attraction in Ireland. He had to go.
    An hour later, Gipson, 24, exited the facility inspired.

    July 19, 2014 1 Photo

  • McAlister’s Deli sets ‘Free Tea Day’ for July 24

    McAlister’s Deli, a leading fast casual restaurant, will celebrate its sixth annual Free Tea Day on July 24.

    July 19, 2014

  • Steffen and Farrow Steffen and Farrow celebrates 40th anniversary

    Steffen and Farrow Orthodontics recently had a ribbon cutting at its Edmond location, 1601 S. Boulevard, to celebrate its 40th anniversary.

    July 19, 2014 1 Photo

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