Twitter's Rowghani sells shares after lockup expiration

Business & Economy -

Twitter officially went public on Nov. 7, 2013, on the New York Stock Exchange, in the most anticipated technology-related IPO since Facebook's in 2012.

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Copyright 2014 Reuters
Copyright 2014 Reuters

Ali Rowghani, Twitter's former Chief Operating Officer, sold 300,000 shares following the expiration of an employee lockup period on May 5, regulatory filings reveal. The sale earned Rowghani $9.9 million.

Rowghani, who stepped down as COO on June 12, was the highest ranking Twitter executive to have sold shares following the expiration of the lockup period. Twitter CEO Dick Costolo and Twitter co-founders Evan Williams and Jack Dorsey said in April they would not sell any of their shares following the lockup's expiration.

Twitter's Chief Financial Officer, Mike Gupta, has now also sold shares following the expiration of the lockup period, according to regulatory filings released on May 16. Gupta sold 66,964 shares, earning him around $2.17 million.

Lockup periods are designed to prevent company insiders -- founders, other executives, and employees -- from flooding the market with shares upon IPO. The expiration of the lockup period led to a large selloff, with Twitter shares declining some 23%.

Twitter co-founder Evan Williams (pictured), who does not have a day-to-day role at the company, <a href="http://www.sec.gov/Archives/edgar/data/1418091/000119312513400028/d564001ds1a.htm" rel="nofollow" target="_blank">is the single largest individual shareholder</a> with 12% of the company's shares. Co-founder Jack Dorsey (who later founded Square) has 4.9% and current CEO Dick Costolo has 1.6%. Source: www.flickr.com

Twitter co-founder Evan Williams (pictured), who does not have a day-to-day role at the company, is the single largest individual shareholder with 12% of the company's shares. Co-founder Jack Dorsey (who later founded Square) has 4.9% and current CEO Dick Costolo has 1.6%.

A computer security firm reported June 10 that hackers have posted the past addresses and social security numbers of several Twitter executives, including those belonging to CEO Dick Costolo, on a Dark Web website. It's unclear how or from where the information was obtained.

A lawsuit that was filed against Twitter in the days leading up to its IPO was dismissed by a federal judge in New York on April 21. The lawsuit alleged that Twitter mislead investors by planning a private stock sale in 2012 before canceling that sale.

Twitter on April 17 officially announced a new mobile ad that lets users install an app directly from a tweet. Though the feature is currently only in beta testing, it's expected to become an important source of revenue for the company.

Twitter posted its second-quarter earnings report July 29, reporting $312 million in revenue, up 124% from a year earlier. Earnings estimates were $283 million. Q3 revenue is projected to be near $330 million, and about $1.3 billion for the fiscal year. Twitter stock was up 30% in after hours trading.

"#Ring!" @Twitter

Twitter began trading on the NYSE on Nov. 7, 2013, at an opening price of $26; the price ended at $44.90 at the end of its first day of trading. The company raised some $1.82 billion in the IPO, giving it a valuation of around $18 billion.

Twitter on Dec. 5, 2013, <a href="http://www.sec.gov/Archives/edgar/data/1418091/000119312513462921/d638295d8k.htm" rel="nofollow" target="_blank">named its first female board member</a>. Former Pearson CEO Marjorie Scardino, who took her seat on the board immediately, said there couldn't be a "more exciting time to join" Twitter. The company had come under criticism leading up to its IPO for having no female board members. Source: www.flickr.com

Twitter on Dec. 5, 2013, named its first female board member. Former Pearson CEO Marjorie Scardino, who took her seat on the board immediately, said there couldn't be a "more exciting time to join" Twitter. The company had come under criticism leading up to its IPO for having no female board members.

Bill Graham Civic Auditorium

Twitter Sept. 10 revealed that it will host Flight, its first-ever developer conference, this October. Twitter CEO Dick Costolo will deliver the event's keynote address.

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