Even after Snap goes public, co-founders Evan Spiegel and Bobby Murphy are set up to essentially keep total control of the company.
After a company’s IPO, a percentage of voting power typically is transferred to investors. But Snap’s filing shows that the vast majority of such privileges would be retained by Spiegel and Murphy. That gives them room to steer the company how they see fit without meaningful oversight from shareholders.
Michael Pachter, research analyst with Wedbush Securities, said the move to largely consolidate voting power between the two co-founders is not unusual in the tech community, especially in the last decade. But never has it been done before an IPO, Snap said.