Online Broadband Guide
Online Broadband Guide

Snap's IPO was much more expensive than those of other tech companies

Snap's IPO was much more expensive than those of other tech companies

On Thursday, Snapchat's parent company Snap expected to start trading on the New York Stock Exchange - under the ticket SNAP - ending the long drought of high-profile initial public offerings.

Investors obviously were even more eager to get a piece of Snap than the company estimated - undeterred by Snap's steep losses and slowing growth of the Snapchat user base, which skews heavily toward teens and millennials. So it's only fitting he will come away with the biggest haul from the IPO. The company saw a healthy pop in its first moments of trading, opening at $24 - roughly 40 percent higher than the company's price of $17 per share, and far higher than the company's original $14-$16 range.

Spiegel and cofounder Bobby Murphy each sold 16 million shares in the IPO that earned them US$272 million apiece. Opinion is deeply mixed as to whether this is a fair reflection of the company's potential - it is yet to turn a profit and past year posted a loss of $515 million - or wildly optimistic.

Along with all his money, Spiegel and his co-founder will maintain control of the company. Those are worth $72 million at $24 per share. Unlike Spiegel, he's not entitled to a generous CEO Award. Earlier, Pisani had reported indications were around $21-$23 per share. "If they don't like how things are going, they can sell their stock".

But some analysts believed the company had been significantly overvalued. "It's a happy day at Lightspeed". Snap's senior vice president of engineering Timothy Sehn, chief strategy officer Imran Khan and chairman Michael Lynton also notched up big paydays.

What's unclear is whether the drone will follow the Spectacles into becoming a consumer product or be used by Snap itself in some other way.

Snap just needs millions more like Murphy willing to make time for yet another social network. Other public internet companies like Facebook and Google do not mention Snap in their quarterly and annual reports. And then there's its odd attempt to morph from a social platform into a newfangled camera company by developing new hardware in the shape of spectacles that post video to the platform (and possibly drones).



editors' picks

March 03, 2017
The Election Centre: Modi Government's Benares Push
Modiji has lowered the dignity of the office of the Prime Minister that he holds and he should be ashamed about it. He told the people that he want to see London having coconut juice and using other "Made in Manipur" goods.

March 01, 2017
Attorneys: 5 automakers knew Takata air bags were dangerous
According to the filing, an airbag from Takata was described as a "killing weapon" by one of the manufacturers as early as 2009. Takata's recall was the biggest in USA history, as it involves an expected 42 million vehicles and 69 million inflators.

March 01, 2017
Calcutta Cup Jones says Scotland will have to justify 'big talk'
We've been made aware it's a tactic that's within the laws of the game whether we agree with it of like it or not. You will find probably the solution with your coach, who has more ability than me to tell you what to do".

February 27, 2017
Jose Mourinho concedes Manchester United were fortunate to beat Southampton
Mourinho complained bitterly about the Europa League Round of 16 draw which paired Manchester United with Russian team Rostov. For United this is Ibrahimovic, with Mourinho saying any serious layoff for the 24-goal man would be a "disaster".

February 26, 2017
Panneerselvam flays Stalin for seeking removal of Jaya pics
She said,"We will definitely be contesting in the upcoming Tamil Nadu local body elections". She also said she would contest elections from the former's constituency, R.K.

February 24, 2017
Lisa Marie Presley's ex has spousal support request denied
She said she owns a home in England that's worth less than what she owes on it, and has made no money as a musician herself. Gross contended that Lockwood hasn't been looking for work and should apply to be a music teacher or work at Guitar Center.

February 23, 2017
Gold Prices Stick in the Range: Undeterred by Rate Hike Fears
In the January statement the FOMC repeated that reinvestments would continue until rate normalization is "well under way". That statement will add to rising expectations the FOMC might increase the benchmark rate at the March 14-15 meeting.

February 22, 2017
Wells Fargo fires four senior managers over fake account scandal
The firings were in connection with the board of directors' "independent investigation", according to the announcement. In that role, he would have been partially in charge of designing sales programs and new products.

February 22, 2017
At African American Museum, Donald Trump Vows to Defend 'Promise of Freedom'
Ben Carson, who has an exhibit at the museum. "Hopefully next week he'll get his approval". He said that he would return to see more of the museum.

February 20, 2017
United come from behind to book Cup quarter final with Chelsea
Those differences stressed, he then added: "The match is in one month's time". And the fact we're away this time means I will go serious into this game.