Snapchat Chief Executive Office and co-founder, Evan Spiegel, is now worth more than twice Oprah Winfrey. Thanks to Snap Inc.’s IPO, Spiegel and his co-founder, Bobby Murphy, are now a lot wealthier. The best measure on how the IPO did was how it boosted Spiegel’s net worth.
According to Time, last week, investors bid up shares for Snapchat owner, Snap Inc., from its IPO price of $17 per share to almost $25. Given that, Snap Inc.’s market value hit $33 billion. After Snap’s IPO, Miranda Kerr's fiance's net worth is now $6 billion. He apparently cashed in $272 million worth of stocks in Snap’s IPO. That makes him wealthier than rich individuals such as Ralph Lauren, Richard Branson and even the United States President Donald Trump.
Spiegel and Murphy are both about $1.6 billion wealthier than they thought they would become. Both founders' net worth could even be higher than $5.5 billion since it does not yet count their houses, cars, properties and other valuables that they have.
Although Snap’s IPO shares were a nonvoting class A stock, both Spiegel and Murphy also own millions of additional shares. That will give both of them high voting power and significant control of the company.
In relation to voting rights, CNBC reported that a group of investors approached S&P Dow Jones Indices and MSCI, both are stock index providers. They are hoping to bar Snap as well as other company that sells nonvoting shares from their stock benchmarks. Some money managers worry about buying Snap’s Class A shares because they have no voting rights. Shareholders have no say in the company.
Amy Borrus, deputy director of the Council of Institutional Investors, said that "They're tapping public markets but giving shareholders no say.” She added, “What we would like to see at the least is for the indexes to exclude new no-vote companies."
Meanwhile, Jobs & Hire shared details on how Snapchat became a billion dollar company. The company credited its success to its loyal users, who shares mostly everything on social media.