Snap Applies Lock-up to IPO Shares
Their remaining shares are worth an estimated $17 million.
The flotation values Snap at $24 billion, despite the company not ever turning over a profit.
The Snap IPO gives the company's co-founders, Spiegel and CTO Bobby Murphy, stock holdings now worth around $US5 billion each.
All's forgiven now: Facebook shares now go for about $137.
With a market cap of more than $30 billion, Snap is now more valuable than Twitter and Viacom (VIAB) , and isn't far behind eBay (EBAY) and Tesla Motors (TSLA). That makes it about 2.2 times more valuable than Comcast and 2.3 times more valuable than Disney.
Silicon Valley has been buzzing about Snap's IPO for months. He has served on the Snap board since April 2013 and was named independent chairman in September 2016.
Ali Mogharabi: Snap became a public company today at an IPO price of $17, above the $14-$16 range it was seeking, and the stock started trading at $24.
He planned to sell 54,907 shares to underwriters, which would be worth almost $1 million. Investors apparently weren't deterred by the fact that the Class A shares sold don't carry voting rights, and leave more than 80 percent of the voting power to CEO and co-founder Evan Spiegel and co-founder Robert Murphy, Snap's chief technology officer.
Other winners from the offering included venture capital firms Benchmark Capital and Lightspeed Venture Partners, whose stakes rose $846 million and $574 million respectively.
Analysts and investors on Wall Street who wondered how Snapchat's parent company, Snap Inc., would fare when it hit the open market got their answer Thursday. The company also acknowledges that competing products, like Instagram Stories, may impact its user growth and overall bottom line.
Whatever happens to the stock on Thursday, it will likely provide few clues as to Snap's true long-term fate on the stock market.
Loss-making Snap's Snapchat app - best known for disappearing messages and use of image filters to add special effects - has proved popular with teenagers especially, with over 158 million users worldwide but user growth has been slowing.
India are going to come back harder, cautions Warner
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Nintendo Switch Gets Stardew Valley This Summer, Multiplayer Support Confirmed
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How to use the Nintendo Switch's Pro Controller with your PC
This may seem like a no-brainer, but make sure you close your game down before you take the card out of the back. Expect to see our review soon, but for now you can check out my impressions from the early parts of the game.
Risk of Severe Weather Tuesday
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Deron Williams excited about joining the Cleveland Cavaliers
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The Walking Dead: Is Eugene a Bad Guy Now?
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Trump doubles down on fight with media during CPAC speech
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Fans welcome Thunder's Gibson, McDermott
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Malaysia reviewing diplomatic ties with North Korea
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Denny Hamlin faster than Dale Earnhardt Jr. when it counts
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