Twitter IPO brings India-born Rizvi a $3.8-bn windfall
09 Nov 2013
Suhail Rizvi, an India-born investor, has emerged as one of the biggest gainers in the high-profile initial public offer (IPO) of Twitter with his 15.6-per cent share in the micro-blogging site now worth a whopping $3.8 billion.
The Twitter stock has gained as much as 73 per cent on its first day of trading on the NYSE, rising to over $45 a share.
Rizvi's firm called Rizvi Traverse and its funds owned 17.9-per cent of pre-IPO Twitter and a 15.6-per cent stake post IPO.
The 47-year-old Rizvi is strategic investor in many technology firms in the Silicon Valley although many in the technology are still unfamiliar with his name.
Rizvi Traverse owns a controlling interest in Playboy and music rights organisation Sesac, as well as stakes in news app Flipboard and Jack Dorsey's digital payments company, Square.
A CNBC report quoting sources said Rizvi had invested $100 million in social networking site Facebook before its IPO and sold its shares earlier this year.
It also has sold its equity stake in talent agency ICM, and in Summit Entertainment , the producer of `Twilight'.
Summit Entertainment has since been sold to Lionsgate.
The New York Times described Rizvi as the ''non-boldface name of the moment'', and a ''strategic power broker who prefers to operate behind the scenes''.
Despite his significant investment gains in recent years, Rizvi has remained a mystery in Silicon Valley.
But Rizvi's low profile seems to have helped him solidify his relationship with Twitter as well as to other hot start-ups, and secure its access to his company.
Rizvi's Twitter connection is reported to have started with connection with Chris Sacca of Lowercase Capital, an angel investor and an advisor to Twitter.
Sacca has been building Twitter-related funds since 2008, bringing in investors such as Ashton Kutcher and Richard Branson.
Sacca, who was previously head of special initiatives at Google, manages a portfolio of more than 50 start-ups, including car service firms Uber and Kickstarter and Blue Bottle Coffee.
Both Sacca and Rizvi Traverse are long-term holders of Twitter and do not plan to sell the shares until at least 180 days after an IPO.
