Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Build Apps 5x Faster
For Half the Cost
Enterprise Cloud Computing

On Force.com
World Wide Web
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
Post-IPO, Twitter Co-Founder Moving to Billionaire Status
Post-IPO, Twitter Co-Founder Moving to Billionaire Status

By Jennifer LeClaire
October 4, 2013 11:33AM

    Bookmark and Share
Twitter's IPO announcement confirms that being a self-made entrepreneur is one of the few strategies available to quickly become a billionaire and adds another notch of success to the New York-based venture capitalists in Silicon Alley. But it's still too early to see if the company's monetization strategies on the advertising side will prove successful.
 

Related Topics

Twitter
IPO
Facebook



Microblogging service Twitter on Thursday filed for an initial public offering and should debut on the stock exchange in November. The firm aims to raise as much as $1 billion under the TWRT ticker symbol.

The public IPO filing offers some clear insights into how the social media giant is performing financially. For example, Twitter reported $254 million in revenue in the first two quarters of 2013.

That's more than double the year-ago period. But the company also reported a $69 million net loss in the first half of the year. Nevertheless, analysts expect a massive IPO.

A Revenue Model That Works

We asked Marcus Nelson, Founder & CEO, Addvocate, a social enablement platform, for his thoughts on the big news. He told us there's a reason Twitter has evoked such a big surge of expectation -- and it's not just because of the recent rally of technology stocks.

"It has everything to do with Twitter proving their new-media model that appeals to broadcasters of all sorts, second-screen conversationalists, branding agencies and politicians," Nelson said.

"Twitter has a revenue model that works. Unlike Facebook, Twitter was birthed on mobile. That's a huge differentiator resulting in 200 million rabid users digesting over 1 billion messages every week. Users have accepted a simplified ad platform that also happens to deliver results to advertisers."

Millionaires in the Making

Meanwhile, Twitter CEO Dick Costolo and two of its co-founders, Evan Williams and Jack Dorsey, could collectively be worth as much as$3.7 billion after the company's IPO, according to a Wealth-X calculation that is based on a top-end valuation of $20 billion that has been widely reported by the media.

Twitter co-founder Williams, who has a 12 percent stake in the company before the offering, is poised to be the largest beneficiary from the IPO. Wealth-X estimates that Williams' personal fortune would grow to nearly $2.4 billion if the company is valued at $20 billion. Williams was Twitter's CEO until 2010, when current CEO Dick Costolo took the helm. Williams is now working on developing a publishing platform, Medium, which is dedicated to long-form content.

Twitter co-founder and chairman Dorsey has a 4.9 percent stake while Costolo holds 1.6 percent. This means their gain from the Twitter IPO could be $585 million and $189 million respectively if the company is valued at $20 billion.

"Twitter's IPO announcement confirms that being a self-made entrepreneur is one of the few strategies available for acceleration of becoming a billionaire and adds another notch of success to the New York-based venture capitalists in Silicon Alley," said Davis S. Friedman, president of Wealth-X, a database of intelligence on the ultra wealthy. "Twitter's valuation demonstrates that it truly has become the interest graph. However, it's still too early to see if its monetization strategies on the advertising side will prove successful."
 

Tell Us What You Think
Comment:

Name:



Barium Ferrite Is The Future Of Tape: Barium Ferrite (BaFe) offers greater capacity, superior performance, and longer archival life compared to legacy metal particle (MP) tape. Click here to learn more.


 World Wide Web
1.   Heartbleed Exploit Could Cost Millions
2.   'Like' Cheerios, Give Up Right To Sue
3.   Google Earnings, Sales Disappoint
4.   Tech Giant Alibaba Plans U.S. IPO
5.   Google Street View Unravels CAPTCHAs


advertisement
Heartbleed Exploit Could Cost Millions
But it could have been prevented.
Average Rating:
Don't Reset Passwords for Heartbleed?
Added caution needed to ensure security.
Average Rating:
Internet Devices Lure Hackers
Mundane devices end up in online crime.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Heartbleed Could Cost Millions, Could Have Been Prevented
Early estimates of Heartbleed’s cost to enterprises are running in the millions. The reason: revoking all the SSL certificates the bug exposed will come at a very hefty price. Some say it all could have been avoided.
 
Michaels Says Nearly 3M Credit, Debit Cards Breached
Arts and crafts retail giant Michaels Stores has confirmed that a data breach at its POS terminals from May 2013 to Jan. 2014 may have exposed nearly 3 million customer credit and debit cards.
 
Google's Street View Software Unravels CAPTCHAs
The latest software Google uses for its Street View cars to read street numbers in images for Google Maps works so well that it also solves CAPTCHAs, those puzzles designed to defeat bots.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
The innovative headpiece may find its niche in markets where hands-free access to data can be a big advantage. Glass experiments for doctors are already under way, with some promising results.
 

Mobile Technology Spotlight
Review: Siri-Like Cortana Fills Windows Phone Gap
With the new Cortana virtual assistant, Windows catches up with Apple's iOS and Google's Android in a major way, taking some of the best parts of Apple's and Google's virtual assistants, with new tools too.
 
With Galaxy S5, Samsung Proves Less Can Be More
Samsung has produced the most formidable rival yet to the iPhone 5s: the Galaxy S5. The device is the fifth edition of the company's successful line of Galaxy S smartphones, and shows less can be more.
 
Facebook Rolls Out Potentially Intrusive Location-Sharing
Looking for friends? Facebook users in the U.S. will soon be able to see which of their friends are nearby, using a smartphone's GPS. Could be a cool feature in some cases, or way too much information.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.