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. Click for more information, or
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
DDoS Protection Powered By Verisign
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

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

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:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 World Wide Web
1.   Twitter May Remove Pics of Deceased
2.   Google IPO Began Decade of Big Bets
3.   Assange Talks of Leaving Embassy
4.   Russian Hacker To Be Held Until Trial
5.   Online Sites vs. Retailing in India


advertisement
OkCupid Experiments with Daters
Unethical without user consent?
Average Rating:
Twitter May Remove Pics of Deceased
Balancing privacy and public interest.
Average Rating:
Online Retailers Ponder Actual Stores
'Click-and-mortar' shops popping up.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
UPS Stores in 24 States Hit by Data Breach
Big Brown has been breached. UPS said that about 105,000 customer transactions at 51 of its UPS Store locations in 24 states could have been compromised between January and August.
 
Cost of Target Data Breach: $148 Million Plus Loss of Trust
The now infamous Target data breach is still costing the company -- and its shareholders -- plenty. In fact, the retailing giant forecast the December 2013 incident cost shareholders $148 million.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Enterprise Hardware Spotlight
Three New Lenovo PCs Aimed at Business Users
Businesses everywhere want computing solutions that do more for less money, and Lenovo has unveiled three new desktop PCs that offer solid computing at a budget-minded price.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 
Compression, Deduplication Come to Violin Concerto 2200
Violin Memory has announced that data deduplication and compression capabilities are now available on its Concerto 2200 solution. Typically, users will experience deduplication rates between 6:1 and 10:1.
 

Mobile Technology Spotlight
Apple Stock Soars Ahead of iPhone 6 Launch
The imminent release of the iPhone 6 -- and maybe even an iWatch -- has sent Apple's stock soaring to new heights. Considering what else the firm could have up its sleeve -- the stratosphere may be the limit.
 
HTC Debuts Windows Phone Version of One M8 Smartphone
HTC is bringing the Windows Phone mobile OS to its flagship One M8 device -- the first time any mainstream flagship smartphone has been offered with a choice of operating systems.
 
Verizon Earns Top Rating in Mobile Network Comparison
A new report says Verizon Wireless was the top-performing U.S. cellphone service provider in the first half of 2014, on a nationwide and state-by-state basis, as well as in metro areas.
 

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 | CRM Systems | 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

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.