Snapchat goes public with three classes of stock

Snap is preparing to go public with three classes of stock, ensuring co-founders Evan Spiegel and Bobby Murphy retain control over the owner of photo messaging app Snapchat (now developing smart glasses and augmented reality, ndr). The technology start-up, which is targeting an initial public offering that could value it at as much as $25 billion, will follow Google and Facebook in creating a separate class of stock… Owning a superior class of stock enables founders to control the direction of their company even after it goes public and gives them protection against activist shareholders and unwanted takeovers. But some investors have criticised the system because they think it gives too much power to founders at the expense of other shareholders. Snapchat has rebranded itself as Snap as it prepares to be one of the first mega-unicorns — private tech startups valued at over $10 billion — and move beyond its app for disappearing messages and ‘stories’ of photos that last 24 hours… The app has 150 million daily active users, who are young and very engaged…


Hannah Kuchler