Twitter Inc. was sued for $124 million by two financial firms that claim the Internet company engineered a failed private sale of its shares in 2012 to strengthen its hand in preparation for its initial public offering.
Twitter Inc. top holders including co-founder Evan Williams, whose stake is worth about $1 billion, are keeping their shares as the company goes public, underscoring their confidence in its growth prospects.
Fred Wilson’s 2007 investment in Twitter Inc. drew a tough inquiry from the technology crowd at the time: How could a service that let anyone say anything in 140 characters be worth $20 million? Wilson was a believer.
Twitter Inc.’s initial share sale is poised to generate riches for its founders and venture investors -- as well as celebrities from Richard Branson to Ashton Kutcher and a host of lesser-known backers who bet early on the microblogging service.