Snapchat co-founders Evan Spiegel and Bobby Murphy to rake in billions from IPO
Snapchat co-founders Evan Spiegel and Bobby Murphy are looking forward to a huge payday ahead of messaging service Snap’s looming IPO, with the pair set to cash in on a valuation for their company set at between $18bn and $22bn.
Reports in Recode suggest that Snap is all set to list on the New York Stock Exchange on 2 March ushering in a cash windfall for shareholders of between $14 and $16 per share.
The biggest beneficiary is expected to be Spiegel who is tipped to net $4.22bn (including a bonus to be paid over the next three years) while co-founder Murphy will make a reported $3.63bn.
Other Snap leading lights such as VP of engineering Tim Sehn and chief strategy officer Imran Khan will take home a projected $108m and $45m apiece.
Several investment funds which bet early on Snap’s success are also set to hit the jackpot with Benchmark and Lightspeed Venture Partners picking up a check for $2.11bn and $1.37bn each.
None of the executives are expected to transfer all of this wealth into cash immediately however they are thought to be ready to sell 16 million shares each, giving them $256m in cash assuming a price of $16 per share.
Initial estimates had suggested Snapchat could have been valued as high as $25bn but these numbers have now been rowed back somewhat.