Mad Money

Twitter IPO could be worth $10 billion to $20 billion

Buzzfeed on Twitter's submission for IPO

(Click for video linked to a searchable transcript of this Mad Money segment)

The Street is buzzing with reports that Twitter plans to go public. Cramer got industry insights from BuzzFeed president, Jon Steinberg.

In a tweet, the social media giant announced that it had submitted a filing with the SEC.

Although Twitter declined to comment further, when social media is buzzing with late breaking developments pros often turn to BuzzFeed, a website that fuses social media and journalism.

And on Mad Money, comments from Jon Steinberg, the president and chief operating officer of Buzzfeed in NYC suggest that this IPO could be a milestone in business history. "It's the first pure social media IPO," he said.

Gabriel Bouys | AFP | Getty Images

Looking at the company's worth, Twitter has been valued by private investors at more than $10 billion and is on track to post $583 million in revenue in 2013, according to advertising consultancy eMarketer.

Comments from Steinberg suggest $10 billion may be conservative. He thinks the IPO could be worth $10 -$20 billion.

When asked why Twitter went public he said, "I think Twitter wants to be a big independent company. They want to be the newswire for the 21st century."

And Steinberg reminded that unlike Facebook, "Twitter is still tiny. I think there's a lot of growth."

BuzzFeed is often on the cutting edge of developing news. That's because "They've really mastered the fusion of social media and journalism," Cramer explained.

The website has become something of a phenomenon and currently generates more than 60 million monthly unique visitors each month.

Since BuzzFeed is not publicly traded investors can't own its stock but Cramer urges investors to take an in-depth look at the success of its business model.

BuzzFeed is free to use yet it still makes money By comparison, "Big name media players are putting their content behind pay-walls," Cramer explained.

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"While so many other media companies are barely surviving, BuzzFeed appears to be thriving," said Cramer.

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However, don't get your hopes up that BuzzFeed is acquired by a public company. "I'm not looking to be acquired," Steinberg told Cramer. "I'm more focused on what we should acquire than being acquired."

That may be something to seriously consider when you're doing homework on other media stocks.

"If you want to make money in this market, you've got to understand underlying trends and themes that are rapidly developing," Cramer explained. The success of Buzzfeed may speak volumes.

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