Major Twitter stockholders to retain shares despite end of lock-up

|By:, SA News Editor

A six-month lock-up on 480M Twitter (TWTR) shares is due to expire today, releasing for trading tomorrow over four times the amount of stock that is already available. The securities also represent 82% of the company's outstanding shares.

The increased supply of stock could add to the 39% drop that the stock price has suffered this year, although major investors who hold at least 205M shares combined plan to hold onto their interests.

These include private-equity firm Benchmark, co-founders Evan Williams and Jack Dorsey, CEO Dick Costolo, and Rizvi Traverse Management, whose 14% makes it Twitter's largest shareholder.

Despite the sharp fall in Twitter's shares in 2014, Barron's reckons the stock is still overpriced, as the company trades at a "big premium" to other Internet plays, its user growth is slowing, and it "appears to be a long way from profitability."