Twitter Rises as Co-Founders, Benchmark Retain Shares

Tickers in this article: TWTR

NEW YORK (TheStreet) - Twitter co-founders Jack Dorsey and Evan Williams, CEO Richard Costolo and early VC-investor Benchmark Capital said on Monday they won't sell shares in the micro-blogging giant as a May 5 lockup looms.

That disclosure made in a filing with the Securities and Exchange Commission, boosted Twitter shares on Monday. Shares were rising nearly 4% to $41.43, helping to mitigate year-to-date losses of over 30%.

"Jack Dorsey and Evan Williams, co-founders of Twitter, and our Chief Executive Officer, Richard Costolo, have informed us that they have no current plans to sell any of their shares of Twitter common stock," Twitter said. "Additionally, Benchmark venture capital funds, which are affiliated with a member of our board of directors, have informed us they have no present intention to sell or distribute stock to their limited partners before or immediately after the expiration of our lockup on May 5, 2014," the company added.

Dorsey, Williams and Costolo will have the ability to sell their shares in the 90-days after Twitter's next lockup expiry, given a so-called cooling off period that has been put in place by the company. Other top Twitter executives have also pledged to either retain their shares, Twitter said.

-- Written by Antoine Gara in New York