Snapchat founders, investors cash out nearly $1 billion
Snapchat founders, investors cash out nearly $1 billion in Snap IPO
Snap Inc.’s initial public offering raised nearly $2.5 billion for Snapchat’s parent company, but it is also raising nearly $1 billion for the founders and early investors.
Snap SNAP, +0.86% announced Wednesday evening that it will sell 200 million shares for $17 apiece in the largest U.S. IPO since 2014. The company will sell 145 million of those shares, while executives and early investors will pitch in 55 million shares that they amassed before the IPO and take proceeds of $935 million home.
Don’t miss: Six things to know about Snap as it goes public
Evan Spiegel and Bobby Murphy, co-founders of the social media company, both planned to sell 16 million shares in the offering, bringing in about $272 million for each. Even after selling those shares, both co-founders will each own 210,970,819 shares, worth nearly $3.6 billion at the IPO price, and will together control more than 88% of voting power in the company. Investors who bought class A common stock in the IPO will not have voting rights.
Additionally, on the closing of the offering, Chief Executive Spiegel will receive a restricted stock unit award of 3% of all shares outstanding to be delivered quarterly over three years. This breaks down to an additional $590 million.
Read also: Snap IPO boils down to single question: Do you trust Evan Spiegel?
Michael Lynton, the chairman of Snap, planned to sell 54,907 shares in the offering, bringing in $933,419. Lynton will still own 2,964,733 shares after the offering, worth more than $50 million based on the offering price.
Benchmark Capital Partners and Mitchell Lasky, a general partner at the firm, planned to collectively sell at least 10,695,868 shares, which brought in roughly $181.8 million. The early investors still own 120,903,572 shares, valued at more than $2 billion at the IPO price.
Other venture-capital shops that invested in Snap are also selling shares. Lightspeed Venture Partners planned to sell at least 4,632,890 shares, amounting to about $78.8 million. General Catalyst planned to sell 572,904 shares to bring in a bit more than $9.7 million. Lightspeed still owns 81,996,630 shares, now worth almost $1.4 billion, and General Catalyst owns 10,139,736 shares, worth almost $172.4 million.
Featured stocks: Coffee Shoppe
For conservative debate: "Keeping it Real"
Game Changing stock $SHMP
Scroll down for more posts ▼
Top 10 Most Recent News Articles
An Evolving Workplace Demands Evolving Strategies Look, careers ain't what they used to be—and they shouldn't be. Today’s world is flipping the script on how we work, and Dr. Brandi R. Muñoz is rewriting the book on career development with her SPECS framework. The guy clinging to his outdated Rolodex for advice isn't gonna cut it anymore. "Who Are Your SPECS?...
Continue Reading
Change in Flight: Bird-X Eyes Strategic Growth Well, here's one that might spread its wings wide. Emanuel Doolittle has joined Bird-X, Inc. as Director of Sales and Business Development. Now, let's not beat around the bush — Bird-X isn't a name you'd see thrown around daily stock talks, but it's stirring up interest in the pest control sector without question. Why...
Continue Reading
A Venture into American Retail Goodal, the darling of Korea's skincare scene, is staking its claim at Costco. This is no small feat, my friends. We're talkin' about a brand that's carved out a sweet niche with its Green Tangerine line. Now it's hitching its wagon to one of America's retail behemoths, known for its unique knack in beauty products. From Olive Young to...
Continue Reading
Well, here's a twist in the pickleball world—DUPR and InBody have struck a deal to bring top-notch body composition tech to the ever-expanding universe of pickleballers. They're merging power players from two different worlds to tap into your performance on the court and your wellness off it. Maybe I'm just jaded from too many marketing pitches, but this one could...
Continue Reading
Just when you think the circus of energy utilities couldn't get any more outlandish, PG&E grabs the spotlight once more. Picture this: they've got the megaphone out, threatening to put the brakes on $2 billion in crucial infrastructure investments. Twenty-five thousand customers left hanging, just waiting for their lights to come on. As if that's not enough, PG&E is also...
Continue Reading
Brace for Impact: Payment Processors in Telehealth A new era is brewing in telehealth, with AI coding tools making website creation a breeze for healthcare folks. But here's the kicker: accepting credit cards is not as easy as setting up a snazzy booking page. Take it from Organic Payment Gateways in good ol' Scarborough, Maine, who've decided to toss their hat into this...
Continue Reading
Luxury Vinyl Tiles: A Market on the Rise Well, folks, the flooring game is picking up steam, and luxury vinyl tiles (LVT) are in the spotlight. With consumers and businesses all looking for something durable yet easy on the eyes and wallet, LVT is answering the call. MarketsandMarkets™ reports that this sector is expected to balloon from USD 18.22 billion in 2026 to USD...
Continue Reading
FDA Throws Wrench Into Bright Minds' Plans This ain't the first time a biotech company's dream has hit the skids, but Bright Minds Biosciences (NASDAQ:DRUG) found themselves in the meat grinder when the FDA threw their epilepsy trial plans under the bus. The partial clinical hold wasn't a gentle slap on the wrist, but a gut punch driven by mouse toxicity findings and...
Continue Reading
A New Era for Family Entertainment Centers Forget the traditional FEC with its solitary rides; the future's all about constructing social destinations that blend immersive storytelling and hybrid offerings. Elephant Sculpture Art Co., Ltd. (ESAC) is at the forefront, drawing from their Shanghai WUNPARK project to reimagine the design of these amusement hubs. Set to engage...
Continue Reading
A Banner Quarter for AMETEK Holy smokes, AMETEK has thrown down some numbers for the third quarter of 2026 that would make any seasoned trader sit up and take notice. We’re talking record-breaking across the board: $2.22 billion in sales, marking a whopping 17% increase over last year. Now, that's not just growth—that's rocket fuel. Earnings per share rocketed up with...
Continue Reading
Top 5 Most Recently Viewed Articles
ThredUp Financial Results for the Third Quarter In the recently concluded third quarter, ThredUp Inc. (NASDAQ: TDUP) reported total revenue of $73 million, marking an 11% decline year-over-year. This decline stems from various market factors influencing the resale industry. Revenue Breakdown and Margins The U.S. market alone contributed $61.5 million to the overall...
Continue Reading
Tesla's Declining Sales in Key European Markets Tesla Inc (NASDAQ: TSLA) is facing significant sales declines in several European countries as reported in early 2025. These drops, drastic in some cases, seem to be a reflection of growing consumer dissatisfaction linked to CEO Elon Musk's heightened political involvement. The Impact of Elon Musk's Political Engagement As...
Continue Reading
Dermata Therapeutics and its Recent Stock Performance In a highly competitive market landscape, Dermata Therapeutics Inc. (DRMA) has experienced a significant decline in stock value, recently hitting a 52-week low of $1.28. As a biotechnology company specializing in dermatological treatments, Dermata has encountered considerable challenges over the past year, resulting in...
Continue Reading
Indonesia's Commitment to the Critical Minerals Industry Fastmarkets proudly reveals an important partnership with the Ministry of Investment and Downstream Industry of Indonesia. This collaboration highlights Indonesia's strategy to boost its role in the global supply chain of critical minerals, aiming to support a sustainable economy centered around clean energy...
Continue Reading
Cox Automotive's Innovative Integration with UVeye Cox Automotive is at the forefront of automotive technology, consistently advancing how dealerships operate. In a recent development, they have integrated their distinctive vAuto platform with UVeye. This integration marks a significant milestone in improving vehicle appraisal processes, allowing for greater efficiency...
Continue Reading
