The Real Reason Fred Wilson And Bijan Sabet Left Twitter's Board: They Sold Lots Of Stock

Fred Wilson

Photo: Seedcamp Photos

A fellow Twitter investor tells us Fred Wilson and Bijan Sabet voluntarily left Twitter’s board in order to sell a significant portion of their shares.”It was about compensation and the rules for the board.  They had mutually agreed some time ago that if anyone cashed out as an investor [AKA sold more than 20% of their shares], they’d have to leave the board. Fred and Bijan decided that, at the $8 billion valuation round, they felt very comfortable with their return and they’d like to get out.”

Fortune’s Dan Primack has also reported this was the reason Sabet and Wilson stepped down.

A source close to Sabet did not deny a share sale, but said Sabet’s VC firm, Spark Capital, has not sold more than half of its stake.

Why would Bijan and Fred sell at all?

Our source speculates:

“I think it’s both the fact that they’ve got to make a return for their funds, and I also don’t think they believe Twitter is going to explode dramatically upward from where it is now.  I don’t really think the return you could see at this point would justify the risk.  Even if it went up from an $8 billion valuation to a $12 billion valuation, it wouldn’t really increase return that much.”

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