Posted on 02/05/2017 4:16:12 PM PST by BBell
Snap cofounders Evan Spiegel and Bobby Murphy will become billionaires overnight when their company goes public at a potential $25 billion valuation.
One person who will not share in their glory is Reggie Brown, who went to Stanford with both men and claimed he came up with Snapchat's core idea of disappearing photos.
Brown filed a lawsuit against Spiegel and Murphy in 2013 after he was forced out of the company and not given equity.
On Thursday, Snap disclosed for the first time that it paid a total of $157.5 million to settle with Brown. The revelation answers the last big question about the most significant startup lawsuit since the Winklevosses sued Mark Zuckerberg over the creation of Facebook.
(Excerpt) Read more at businessinsider.com ...
Crap, I’d have disappeared for a mere $100M!
I’d do it for $99M.
Is this the company that is going IPO and has a warning in the prospectus that the company may NEVER achieve profitability? If so, then the NPV of its future earnings is less than zero, yet there are people who are going to give their money to these guys making them billionaires?
I did an armed guard gig at a company who paid their original founder $25 million to go away and he was still disgruntled. I think it was called “GodTube” like Youtube.
Dang, you bet me to it.
You have to be purty quick to beat this sharp FREERPS like you round these parts...
Reggie Brown may have the last laugh. These two other founders are offering stock to the public but the only stockholders who will have any voting power are the two guys who will retain 100% control of the company.
Would you buy their stock without having any voting power? I sure would not. I suspect that even if it opens at the offering price, within a short time, the price per share will be in the toilet.
158 mil? I think I could make it work. It would be tight, but I think I would get by.
CC
What a bunch of hype.
Teens already waste gargantuan amounts of time.
Wall St. needs another iPO to make billions in hedge profits before the President lowers the boom on their zero rate tax loophole.
I still don't know how facebook makes money.
Absolutely Not!!!
Facebook makes money off of advertising. And possibly from selling customers’ data/likes/preferences.
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