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.
At the Venice Whaler Bar & Grill about a mile south of Snap's main offices, about 250 people had gathered by Thursday afternoon. A bartender said they had begun arriving by mid-morning.
Wearing Spectacles, T-shirts decorated with Snap's ghost logo and name badges with bitmojis, they filled the upper level of the bar. They looked out on the boardwalk and sunny beach while soccer and college basketball games — as well as CNBC, which broadcast Snap’s stock price throughout the trading day — played on TV sets.
Some of them snapped photos using Snapchat lenses as they downed beers, margaritas and shots, periodically erupting in cheers.
Snap Inc. set up two food trucks Thursday near its offices on Market Street offering free cheeseburgers and ice cream to all comers. A taco truck arrived in time for the lunch hour.
A steady stream of people, mostly skateboarders, lined up for food. A few shouted anti-Snap comments as they waited for their meals.
Mike Lindley, a protestor and organizer with Veterans for Peace, was trying to encourage people to stay away from the trucks, which he saw as simply a way for the company to garner good publicity. Lindley said he moved to Venice in 1968 after serving in the Navy and now stays on a friend's couch because he can't afford rent.