Following Facebook's lead, Twitter files for IPO to become publicly traded company

Twitter has filed for an initial public offering with US regulators, meaning it will soon go public and be able to generate enough cash to develop more products, grow in terms of talent and user base and increase advertising initiatives. 

Twitter announced the news via a tweet: "We’ve confidentially submitted an S-1 to the SEC for a planned IPO. This Tweet does not constitute an offer of any securities for sale." 

The company confidentially filed for an IPO under a 2012 law, called JOBS act, which allows a companies to keep initial filings under wraps if it has less than $1 billion in annual revenue. The law also assists startups with less than $1 billion in revenue with going public, according to Reuters

Twitter's revenue is therefore presumably under the $1 billion mark, though the company is reportedly valued at more than $10 billion. 

Read: Facebook IPO could value site at $100 billion, but is it worth it?

This is seen as a huge move for Twitter and in Silicon Valley (at least since Facebook filed its IPO), so it's likely that the microblogging site will have a closely-watched stock offering.

Also, because Twitter filed for IPO, it will now need to release its financials earnings to the public. But that won't happen until it starts marketing the public offering.