Deals
Snap’s Concentrated Power Structure Takes a Page From Old Media
- Company may be first to hold U.S. IPO with non-voting stock
- Three share classes give founders iron grip on strategy
Is the Timing Right for Snapchat Maker Snap's IPO
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Snap Inc. often likens its app to a new form of television. It’s also borrowing from the playbook of traditional media companies to create a small circle of power in its top ranks.
Using three classes of stock, founders Evan Spiegel and Bobby Murphy will hold majority voting rights after an initial public offering, according to the company’s prospectus. That sort of control is rare outside the media business or the hottest technology companies.