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Jack Dorsey in IPO talks over payment platform Square - report
Twitter co-founder chats to banks about floating ANOTHER profitless firm 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. ®