Snapchat CEO Evan Spiegel is hogging all the limelight right now. His baby Snapchat IPO was bigger success than anticipated and with the success of IPO, the 26-year old founder of the image messaging and multimedia mobile application has become richer by several billions of dollars.
The image messaging and multimedia mobile application he cofounded some five years ago with two of his friends Bobby Murphy, and Reggie Brown, who like him were students of Stanford University.
Spiegel and his co-founder, Chief Technical Officer Bobby Murphy launched the IPO by ringing the opening bell at the New York Stock Exchange March 2. The share price of Snapchat’s parent company that opened at $17 went very high and finally closed at $24.48.
While many people are not very enthused by Snapchat IPO and claim that it may not be as great business as many make it look like. Many others compare it with Twitter IPO.
Nonetheless others suggest that it makes good business. Glenn Solomon, managing partner at GGV Capital, was quoted by the CNBC as saying, “I actually think Snap’s valuation today makes some sense…The ad units on Snapchat perform so well today. … I think the users of Snap will monetize so well over time…In the IPO market, sometimes hot is cold and cold is hot…The long-term investors who want to participate in a company like this, they have long memories. They remember Twitter being hot, and then the stock not working in the after-market. They even remember back to Facebook and Google, where those deals were cold, but the stocks have been heroic ever since. …. The underwriters did a great job getting it into the right hands.”
While talking to Los Angeles Times, Spiegel said, “We built our business on creativity…And we’re going to have to go through an education process for the next five years to explain to people how our users and that creativity creates value.”
Fortune magazine says that with the IPO becoming such a massive success, Spiegel is now worth more than $5.5 billion. The cofounder of the company, Bobby Murphy, is also now worth about $5.5 billion. The two young men still own as many as 211 million shares in the company.
Evan Spiegel has attracted media attention not just for his app Snapchat, but also due to the fact that he has been dating model Miranda Kerr since 2015. The two were engaged last year. The two bumped into each other at a Louis Vuitton dinner in Los Angeles in 2014. It was revealed by Australian Victoria’s Secret model later. “We were really good friends for a long time before we started dating…We’ve just been having fun together and sharing our time amongst friends and family”, said 33-year old Kerr. She is some six year older than Spiegel.