Tech

CEO Evan Spiegel will likely be worth more than $4 billion once Snap IPOs

Kurt Wagner
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Snap seeks IPO valuation up to $22.2B
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Snapchat co-founders Evan Spiegel and Bobby Murphy are about to become billionaires.

Spiegel, 26, and Murphy, 28, were already paper billionaires, but Snap has publicly filed paperwork for an IPO, and an amended S-1 document filed Thursday with the Securities and Exchange Commission shows the company hopes to sell its stock between $14 and $16 per share.

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Update: Sources tell Recode the company is planning to price the stock on March 1, and list the stock on the New York Stock Exchange March 2. Business Insider previously reported this schedule.

At the high end, that would put Snapchat's valuation at roughly $18 billion, according to the total number of shares outstanding. If you add in things like restricted stock units for employees and executives, plus a nice bonus for Spiegel, the valuation could jump to over $22 billion.

That means all of Spiegel's and Murphy's shares are about to be worth some serious money on the New York Stock Exchange. A few other executives, plus a bunch of investment funds, will also get rich.

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Assuming a $16 share price — and this could change quickly once the company hits the open markets — here's the projected value of stakes held by key executives and investors.

  • Evan Spiegel, CEO and co-founder: $4.22 billion (this includes a bonus Spiegel is set to receive, paid out over the next three years)
  • Bobby Murphy, CTO and co-founder: $3.63 billion
  • Benchmark: $2.11 billion
  • Lightspeed Venture Partners: $1.37 billion
  • Tim Sehn, VP of engineering: $108 million
  • Imran Khan, chief strategy officer: $45 million

Most of this wealth will be in the form of Snap stock, though a number of executives are also selling some of their stock as part of the IPO. Spiegel and Murphy, for example, are selling 16 million shares apiece, which means they'll cash out a small fraction of their ownership to the tune of $256 million each, assuming the $16 share price.

Spiegel and Murphy also sold a small number of shares back in September at a stock price of $30.72 per share, about $8 million worth of stock.

For comparison's sake: Facebook CEO Mark Zuckerberg has a net worth of nearly $56 billion, SpaceX and Tesla founder Elon Musk is at $14 billion, and Twitter and Square CEO Jack Dorsey is at $1.25 billion.

By Kurt Wagner, Recode.net.

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