RE:A 181-day “rest” of Twitter shares

This post is in response to Eric Cho’s blog post about twitter shareholders.
After the IPO of Twitter involves in a great success, the corporation decided to serves a longer lock-up period than Google and Facebook. From Eric’s point of view, the best way to retain the shareholders is to show them the steady stock price.

Personally, I believe it is a wise choice for Twitter to close for nearly half year. First of all, according to Facebook’s failure, the company knows the right timing to avoid stock pressure even if they accidently meet the unlock stage in this competitive market. Secondly, it actually calms the investors down; they won’t give up their share at the beginning. In addition, since Twitter gain more reputation during to the IPO launch, people are more likely to trust them as well as expecting the profitability they bring back when re-started.

Overall, Twitter provides a reasonable norm strategy for the company to integrate better with the market.

Reference:
Aman, Jain. “ValueWalk.” ValueWalk. N.p., 12 Nov. 2013. Web. 14 Nov. 2013. <http://www.valuewalk.com/2013/11/twitter-keeps-longer-lock-up-period/>.

Leave a Reply

Your email address will not be published. Required fields are marked *