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How Twitter Can Avoid Becoming the Next AOL

wired.com

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Re: How Twitter Can Avoid Becoming the Next AOL

#3
> Cashing out by the people who understand Twitter’s prospects best is an ominous sign for the company and adds to the very long list of concerns about its future.

When you make many, many millions of dollars, you need to pay tax on it. Where do you think you get the money to pay the tax for it? You sell shares.

Re: How Twitter Can Avoid Becoming the Next AOL

#4

> Cashing out by the people who understand Twitter’s prospects best is an ominous sign for the company and adds to the very long list of concerns about its future. When you make many, many millions of dollars, you need to pay tax on it. Where do you think you get the money to pay the tax for it? You sell shares.

Someone would only pay taxes on the stocks if they sold it, via capital gains. If they're just being taxed on income, they can use that income to pay their taxes. Or am I misunderstanding you?

Re: How Twitter Can Avoid Becoming the Next AOL

#5

> Cashing out by the people who understand Twitter’s prospects best is an ominous sign for the company and adds to the very long list of concerns about its future. When you make many, many millions of dollars, you need to pay tax on it. Where do you think you get the money to pay the tax for it? You sell shares.

Someone would only pay taxes on the stocks if they sold it, via capital gains. If they're just being taxed on income, they can use that income to pay their taxes. Or am I misunderstanding you?

You're misunderstanding how and when vested RSUs get taxed. Capital gains is the tax you pay on your profit from owning a stock (after owning it for over a year). When a company gives you shares/RSUs, that is income and you must pay income tax on that right when it vests and the company has IPO'd.

See: http://business.time.com/2013/11/07/twitter-employees-will-o...

Re: How Twitter Can Avoid Becoming the Next AOL

#7
post #6

This article really fails to answer the question its headline poses.

It's Wired. What'd you expect?

Gonzo journalism targeting a tech audience.

Turning back to Twitter, I like the service, and find 140 characters refreshingly brief. I don't know how to preserve it, but they've got huge mindshare and should be able to leverage that profitably.

Re: How Twitter Can Avoid Becoming the Next AOL

#9

Earlier quoted context omitted.

Someone would only pay taxes on the stocks if they sold it, via capital gains. If they're just being taxed on income, they can use that income to pay their taxes. Or am I misunderstanding you?

You're misunderstanding how and when vested RSUs get taxed. Capital gains is the tax you pay on your profit from owning a stock (after owning it for over a year). When a company gives you shares/RSUs, that is income and you must pay income tax on that right when it vests and the company has IPO'd. See: http://business.time.com/2013/11/07/twitter-employees-will-o...

Ah, sorry, I was misunderstanding the rules. Thanks!

Re: How Twitter Can Avoid Becoming the Next AOL

#10
I truly think a redesign is the only thing keeping from Twitter today to Twitter 10x. It is too cluttered and they are innovating their design too slowly. Remember how fast Facebook released changes (albeit facing massive protest)? People got over it and they are still growing. Twitter needs more contextual filters!
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