Twitter went public on November 6, 2013 and while shareholders will soon be able to sell shares, several key people will be holding out.
According to a SEC filing published Monday morning, Co-Founders Jack Dorsey, Evan Williams and CEO Dick Costolo “have no current plans” on selling any shares.
May 6 is when the lock-up date expires, and investors Benchmark Capital and Rizvi Traverse Management will also hold off on selling its shares.
500 million shares will be eligible to be sold, and that means Twitter employees will finally be able to see a return on their equity.
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“Twitter’s hope: Make clear that its top shareholders — as well as Twitter board members Benchmark Capital — won’t be selling any time soon, and it’ll instill confidence in everyone else.”
That confidence is key considering Twitter stock went from an all-time high of over $70 in December, and is now currently sitting around $40 per share.
However, that’s still $14 higher than its initial IPO price, and at around $40, gives it a far more realistic valuation, which some say is still too high.
The social network recently made some major updates to its website, adding both real-time notifications and new profiles, and new advertising options could prove enticing.
However, Twitter still has the user growth concern looming over its head, and a report claiming that 44 percent of accounts have never tweeted definitely doesn’t help.
Photo credit: Anthony Quintano