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...
Get Recognized.
Let an ISACA® certification
enhance your career.

Register for an Exam Today
Enterprise I.T.
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:



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.


 Enterprise I.T.
1.   Windows 7 Ends Mainstream Support
2.   Another IE-Focused Patch Tuesday
3.   BlackBerry's Hip To Be Square
4.   Gartner Rates IT Security Companies
5.   Google I/O Brings a Lot for Biz Users


advertisement
Windows 7 Ends Mainstream Support
But extended support still available.
Average Rating:
Another IE-Focused Patch Tuesday
One critical for Internet Explorer.
Average Rating:
Gartner Rates IT Security Companies
IBM, HP, McAfee, Splunk ranked well.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Report: Chinese Hackers Hit U.S. Personnel Networks
Hackers from China broke into the computer networks of the U.S. Office of Personnel Management earlier this year with the intention of accessing the files of tens of thousands of federal employees.
 
Charges: Russian Stole Data from U.S. Restaurants, Zoo
A Russian man arrested on bank fraud and other charges hacked into computers at restaurants in Washington, hundreds of other retail businesses, and even the Phoenix Zoo, authorities say.
 
Another Month, Another IE-Focused Patch Tuesday
Microsoft rolled out 59 vulnerabilities for Internet Explorer in June. But the IE-patching party is not over yet. Redmond published six new security bulletins on Tuesday; two, critical; three, important.
 

Enterprise Hardware Spotlight
Another Day, Another Internet of Things Consortium Is Born
In the emerging Internet of Things, zillions of devices will be talking to each other. Samsung, Intel and Dell just formed a consortium to ensure each thing can understand what others are saying.
 
Gartner Sales Study Sees Tablets Up, PCs Down but Recovering
Are PCs on the comeback trail? That depends on how you define "comeback." While tablet sales remain strong, Gartner's latest study found PC shipments aren't dropping as fast as they did last year.
 
Review: Warming Up to Tablets with Keyboard Covers
If you've ever thought tablets with keyboard covers were just a poor excuse for a laptop, think again. Nokia's Lumia 2520 comes with an optional keyboard cover that just may change your mind.
 

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.