Twitter’s initial public offering (IPO) was, by all accounts, a huge success. The company sold millions of shares at its asking price of $26 dollar a piece and, at the time of writing, has a market capitalisation of $23.96 billion.
Of course, Twitter is still, relatively, a small company, and with that amount of cash being pumped into the firm, a lot of people did rather well. Indeed, by one estimate, some 1,600 Twitter employees are now millionaires or better. That’s the good news. The bad? Collectively, they owe more than two billion dollars in tax.
This data comes courtesy of PrivCo, who based its estimate on information found in the company’s prospectus and the first day’s closing price of trading. PrivCo calculated that Twitter’s IPO also turned out to be a massive payday for both the US Federal and state of California tax authorities. California’s 8 percent tax rates means $479 million in taxes is owed, but that’s chump change compared to the IRS, who are set to claim $1.72 billion in taxes on their 32 percent rate.
Twitter’s stock performance, post IPO. Source: Yahoo.
For the record, Twitter themselves have poured cold water on PrivCo’s report, saying “We don’t know where they came up with their numbers.” Either way, it’s highly likely a lot of people did rather well. What more could you ask for from an IPO?