Twitter Executives and Investors Don't Plan on Taking Advantage of Lockup Expiry in May

Posted by Knowlton Thomas

On May 5, Twitter's share lockup will expire, meaning executives with big stakes in the company will be free to unload their shares.

This can cause a big dip in some company's stock prices—this happened to Groupon in 2012, for example—but Twitter is adamant about easing this concern for investors. According to the company, its cofounders, chief executive officer and largest investor have no immediate plans to sell shares.

Jack Dorsey, Evan Williams, and Dick Costolo all plan to hold onto their stakes in full, according to Twitter's most recent regulatory filing. Meanwhile, Rizvi Traverse Management LLC (which owns 14% of Twitter) is also hanging on, according to "a person with knowledge of the firm" cited in Bloomberg. Venture capital firm Benchmark, which owns 5%, also has no intention to sell in the near future.

Twitter held its initial public offering last November. Shares tripled by the end of 2013, but since have dropped 45%.

Photo: Adam Jeffery, CNBC

Company:
Twitter
Website:
http://www.twitter.com
Location:
San Francisco, California, United States

Twitter is a privately funded startup with offices in the SoMA neighborhood of San Francisco, CA. Started as a side project in March of 2006, Twitter has grown into a real-time short messaging service that works over multiple networks and devices. In countries all around the world, people follow the sources most relevant to them and access information via Twitter as it happens—from breaking world news to updates... more


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Knowlton Thomas

Knowlton Thomas

Knowlton is the managing editor of Techvibes. Based in Vancouver, Knowlton has been published in national publications and has also appeared on television and radio. Previously he was an editor for New Westminster weekly The Other Press and served on its board of directors. When not working, Knowlton enjoys playing tennis or otherwise enjoying the outdoors. more



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