Post-IPO, Twitter Co-Founder Moving to Billionaire Status

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...

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