Snapchat is owned by Snap Inc., but the story behind its ownership and evolution is quite fascinating. Let me take you through this journey.
The Founding Story
It all started in a Stanford University classroom back in 2011. Three students – Evan Spiegel, Bobby Murphy, and Reggie Brown – came up with an idea for an app where photos would disappear after being viewed. While Reggie Brown was initially involved in the concept, it was Spiegel and Murphy who ultimately founded what was then called “Picaboo,” later renamed to Snapchat.
Current Leadership Structure
Today, Evan Spiegel remains at the helm as CEO of Snap Inc., while Bobby Murphy serves as Chief Technology Officer. They’re not just executives – they’re the largest individual shareholders of the company, maintaining significant voting control through their special class of shares.
The Public Company Transition
Here’s something interesting – in 2017, Snapchat’s parent company went public under the name Snap Inc., in what was one of the most anticipated tech IPOs since Facebook. The company raised $3.4 billion in its initial public offering, but unlike many tech companies, Snap’s founders retained unusual control over the company’s direction through their voting rights structure.
Ownership Breakdown
While Snap Inc. is publicly traded on the NYSE under the ticker symbol SNAP, the ownership structure is quite unique. The company has a three-class share structure:
– Class A shares (publicly traded, no voting rights)
– Class B shares (held by executives and early investors, 10 votes per share)
– Class C shares (held exclusively by founders Spiegel and Murphy, 10 votes per share)
Major Stakeholders
Beyond the founders, major institutional investors include:
– Vanguard Group
– BlackRock
– Edgewood Management
– T. Rowe Price Associates
The Evolution of Control
What I find particularly interesting about Snapchat’s ownership structure is how it’s maintained its startup DNA while operating as a public company. Spiegel and Murphy designed the company’s structure specifically to keep control in their hands, allowing them to make long-term decisions without excessive pressure from external shareholders.
This approach has had its critics and supporters – some investors worry about the lack of voting rights, while others appreciate the ability to make bold, long-term decisions without quarterly pressure. It’s similar to how Mark Zuckerberg maintains control of Meta, but Snap’s structure is even more concentrated.
