Square could give Twitter co-creator yet another IPO

Jack Dorsey has reportedly held talks with big banks about underwriting an offering for the mobile-payment company.

By Benzinga Nov 8, 2013 2:05PM

File photo of Square, a credit card reader made for smartphones, plugged into an Apple Inc. iPhone (© Jin Lee/Bloomberg via Getty Images)By Jayson Derrick


One down, one to go. The Wall Street Journal is reporting that Jack Dorsey's company, Square, is in the early stages of an IPO.


Dorsey has reportedly held talks with potential underwriters Goldman Sachs (GS) and Morgan Stanley (MS).


Dorsey is best known as being the co-creator of Twitter (TWTR), whose shares went public Thursday.


Square allows merchants to accept debit and credit card payments on a consumer's smartphone or tablet through a user-friendly app. The app supports manually entering the card details, or the consumer can swipe the card through a reader that attaches to the smartphone or tablet.


The Journal reported that a decision has yet to be made with no banks being hired. Spokesmen at Square, Morgan Stanley and Goldman Sachs all declined to comment.


Following Dorsey's comments that he is pleased with how smooth the Twitter IPO was handled, it would not surprise many if Square were to join Twitter as a public company. A strong indication that Square is heading to Wall Street is the recent bolstering of its management team.


The Journal reported that two public company veterans has been made part of the Square team. Sarah Friar was hired from Salesforce.com (CRM) to become chief financial officer at Square. Friar brings with her 11 years as a managing director at Goldman Sachs.


David Viniar, a former Goldman Sachs vice president, joined the company's board of directors on Oct. 30, replacing Starbucks (SBUX) CEO Howard Shultz. Shultz agreed to a one-year term, following his company's $25 million investment in Square in 2012.


Square bolstering its corporate roster is following the same path that Twitter has taken. Earlier this year, Twitter hired Cynthia Gaylor, a Morgan Stanley veteran, to run its corporate development team. This led many analysts and investors to correctly speculate that Twitter was gearing up for an upcoming IPO.


Read more from Benzinga

1Comment
Nov 9, 2013 2:07AM
avatar
Wow, he's barely done selling investors one worthless company and now he already prime to sell them another. Unfreaking believable. Party on like it's 1999. Same attitudes about a decade and a half later. They will say nobody say it coming when in FACT, literally everyone saw it coming.
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