Feeds

Twitter co-founder chats to banks about floating ANOTHER profitless firm

Jack Dorsey in IPO talks over payment platform Square - report

Boost IT visibility and business value

Not content with one high-profile IPO, Jack Dorsey is trying to get his other startup, payments firm Square, onto the market in 2014, according to recent reports.

Dorsey, who founded both Square and Twitter, has held discussions with banks about getting the company that lets you make payments with your mobe or fondleslab ready for an initial public offering next year, the Wall Street Journal reported.

According to another familiar person, Square says that it's growing quickly, projecting sales of nearly a billion dollars next year from processing around $30bn in transactions. Sales this year are expected to be about $550m on around $20bn worth of payments. However, around 80 per cent of that goes to credit card companies, putting net revenues at around $110m to $165m.

Dorsey has said in the past that Square is not yet profitable, but that's unlikely to stop anyone from investing in it if past experience is anything to go by. Twitter presently going public with shares staring at $46, making the company worth an eye-watering $24bn - all without ever having turned a profit.

Dorsey set up Twitter with Evan Williams, Biz Stone and Noah Glass in 2006 and he served as CEO until Williams took over two years later, when he became chairman of the board. He developed Square while still chairing Twitter, releasing the payment platform in 2010.

Already nearly a paper billionaire, Dorsey will make a sizeable chunk of change from his 4.9 per cent stake in Twitter, which would be worth more than $700m at the starting price. If Square were to go public, he could expect another hefty sum from his estimated 26 per cent share of that business. ®

Build a business case: developing custom apps

More from The Register

next story
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.