13/09/2013 World Business Report

has asked for the death penalty. For the death penalty. The the 22

year—old 22 year—old victim victim died from the injuries. Died from

the injuries. Those are the latest headlines from BBC World News. Now

for the latest financial news on World Business Report.

Trending on Wall Street — Twitter tweets its plans to go public, in

the most eagerly awaited share sale since Facebook. Plus, are foreign

firms being unfairly targeted in China's crackdown on corporate

corruption? We hear the views of one top lobbyist. Welcome to World

Business Report. An exciting and fascinating an exciting and

things business. Of all things fascinating an exciting and

things business. Of all things business. We start with that news

that has Wall Street buzzing, not to mention Silicon Valley. Late on

Wednesday the social networking site Twitter announced — tweeted — on its

regulators for an initial public regulators for an initial public

offering or IPO. Going public, basically, to sell

flotation since rival Facebook went public last year. So we don't know

when it's going to happen, financial details are sketchy at the moment

but this is what we do know. Twitter is very popular — it has 200 million

current active users. It's still a fraction of the more than one

billion people who use Facebook worldwide. Like Facebook it makes

money from advertising — according to researchers Emarketer it's on

track for ad revenues of track for ad revenues of over $580

million dollars this year. Again, less than a third of the revenue

Facebook made in the last quarter. The big question: What could it be

worth? Well, last month one of its investors, GSV Capital, put a price

By the time of any flotation it's By the time of any flotation it's

likely to be more than that. But still a tenth of the $100 billion

Facebook is valued at now. Who is going to cash in? 39—year—old Jack

Dorsey, on the left, and 41—year—old Evan Williams, on the right, are

co—founders of the company and the biggest individual shareholders. I

Also lots of early investors Also lots of early investors

including venture capital firms including venture capital firms and

Prince Alwaleed bin Talal of Saudi Arabia. Let's not forget the

bankers, of course, Goldman Sachs is thought to be among the banks

involved — sharing fees of up to $50 million. From politicians to

growing social network sites so it's celebrities, millions of users tweet

Thursday, it surprise many by Thursday, it surprise many by

most hotly anticipated public most hotly anticipated public

offering since Facebook. While Facebook shares have recovered in

recent weeks, the offering described as disappointing or even

disastrous. With a smaller platform, can Twitter do any better? It still

has a battle to face. They have challenges in the marketplace. At

the same time, over the last year, Twitter has demonstrated a strong

business model. You could argue that business model. You could argue that

Facebook had not at that point. Twitter did not say much about the

share sale and we do not even know when it is going to happen. Now that

it has filed paperwork with US regulators, it is not allowed to

talk to the press. Now, back to work. Larry Magid is a technology

analyst and journalist based in Palo Alto California. Great to have you

with us. A value has to be put on the company. But with Twitter, it is

not more of a case of what it is worth now but that potential worth?

That is what IPO are about. What it is going to be worth in the near but

somewhat distant future. Am I right by saying that Twitter... One of the

great things with Twitter, up its sleeve is the extraordinary ability

to tap mobile advertising. Something many companies still struggle with?

The Bible is key for Twitter and mobile

The Bible is key for Twitter and they are in a key position. —— they

are —— the mobile. Is key. Is there a danger that the current people who

tweet at the moment that they kind of like the way it is. Sure, we all

love it the way it was and we are already starting to see ads on

Twitter but the bottomline is that somebody has to pay the bill.

Started this company did not do it Started this company did not do it

as a charity. I am not too worried about the privacy. Twitter is public

anyway. But it is one thing to treaty your views to your friends

but another to be treated at by advertisers. I think it will annoy

people but that is how it is. Do you think Twitter can learn something

from Facebook's IPO? To be frank, it was a disastrous year? I think

Facebook overpriced its IPO. They valued the company to high that

moment in time. The technical glitch on the NASDAQ. Twitter will be more

realistic. And exchange will be able to handle the

traffic. Thank you very much. Are foreign companies being unfairly

victimised in China's crackdown victimised in China's crackdown on

corruption? That's the view of a senior public relations consultant

advising top multinationals in advising top

China. Jim McGregor of APCO has been China. Jim McGregor of APCO has been

Economic Forum in Dalian, Economic Forum in Dalian,

come against the backdrop of a come against the backdrop of a

Chinese police investigation into alleged bribery by several large

Western companies including the British drugs maker GlaxoSmithKline

seems to be going on. A new seems to

leadership came into office and had leadership came into office and had

a corruption problem and economic problems and the launch and a lot of

changes. in anticorruption is to show people

they are on your side. They are going after companies, industries,

that affect the consumer. The effect on foreign companies, on the other

hand, is worrisome because they do hand, is worrisome because they do

not know what is hitting them. Tell me about the methods? It has reached

back into the toolbox it knows and that is shaming and ordering people

to confess that they have done wrong so that you'll penalties can be

minimised. They are treating foreign companies like they have treated

thereat own and this is the way thereat own and this is the way the

party works. It sounds like party works. It sounds like a

political strategy? These are the tools of the party knows. These are

tools which are more comfortable to the party than a court of law. They

are telling foreign companies to behave themselves to remember they

are in charge. The next step may be more reform and opening, more

chances for foreign business, but they have already told them to

remember who is in charge. Despite big Western companies complaining,

a Chinese company? We have seen that a Chinese company? We have seen that

this week. The latest, Sino a Chinese company? We have seen that

Bio—pharmaceutical, of having one of its subsidiaries

paid for illegal of having one of its subsidiaries

doctors. The firm says it allegations. Sino Bio—pharmaceutical

shares plunged 25% to a half p low before recovering before trading was

suspended yesterday. The subsidiary in question is a 60% owned by Sino

Bio—pharmaceutical. According to the allegations, it takes a doctors to

travel and this could be considered a bribe. Other companies have been

investigated. It shows that it is not just the Western firms but

the time I have. I will be back to the time I have. I will be back to