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