Twitter sets IPO price at $26
_ Twitter has set a price of $26 for its initial public offering of stock, which means the company's shares can begin trading Thursday on the New York Stock Exchange.
The price values Twitter at more than $18 billion based on its outstanding stock, options and restricted stock that'll be available after the IPO.
Twitter Inc. had originally set a price range of $17 to $20 per share for its IPO, but analysts expected that to go higher. The company raised the range on Monday to $23 to $25 per share, signaling enthusiastic response from prospective investors.
The San Francisco-based short messaging service is offering 70 million shares in the IPO, plus an option to buy another 10.5 million. It is set to begin trading Thursday morning under the symbol "TWTR."
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Twitter's public stock offering will raise as much as $2 billion and value the company at $17 billion. Most of the founders and early leaders will benefit, and one will likely become a billionaire. Here's a look at how much the key Twitter figures are worth:
• Jack Dorsey, co-founder and chairman, was CEO from 2006 to 2008. His 4.3 percent stake in the company will be worth about $586 million if Twitter's IPO hits the high end of its price range.
• Noah Glass, co-founder. His name isn't mentioned in Twitter's IPO filings, and he apparently won't make much money, if any, from the company's success.
• Evan Williams, co-founder, CEO from 2008 to 2010. He emerged as Twitter's largest shareholder when he bought the service for an undisclosed amount through a company called Obvious, which he owns. All signs point to Williams being minted as a billionaire when Twitter's stock begins trading. His 10.4 percent stake will be worth $1.4 billion if Twitter's IPO hits the high end of its price range.
• Biz Stone, co-founder. Although his remaining stake in Twitter is too small to be listed in the company's IPO papers, Stone is believed to have made millions already by selling some of his holdings in previous years.
• Dick Costolo, CEO from 2010 to present, joined Twitter in 2009 as chief operating officer. He owns a 1.4 percent stake in Twitter, which will be worth about $192 million at the high end.