NBC Bay Area
Twitter sign in San Francisco
Twitter is talking to more banks as it prepares to launch its initial public offering likely by Thanksgiving, according to reports.
Twitter, the microblogging service, is looking to add the banks to its underwriters and is finalizing its fee structure, Reuters reported. The news comes from unnamed sources "familiar with the matter."
Underwriters receive about 7 percent of IPO funds but larger public offerings can mean less. In Facebook's much-touted $16 billion IPO, banks were willing to split 1.1 percent not only for its size but the "prestige," according to Reuters. Those Facebook underwriters took home $176 million in fees.
So far, there hasn't been any talk about a fee pool or proposal, but Twitter's IPO is estimated at $15 billion. Twitter is expected to raise $1 billion.