Snapchat is one of the most popular social media apps, especially among younger demographics. With its fun filters and disappearing messages, Snapchat has become a daily communication tool for millions of people around the world. But who actually owns and operates this major tech company?
The Founders of Snapchat
Snapchat was created by Evan Spiegel, Bobby Murphy, and Reggie Brown while they were students at Stanford University in 2011. Spiegel and Murphy were Kappa Sigma fraternity brothers and lived together in the Kappa Sigma house at Stanford. Brown lived in the house next door and was also a member of the fraternity.
The trio started working on Picaboo, which was the original name of Snapchat, in Brown’s dorm room. The idea for an app where messages disappeared after being viewed came to them when they were discussing the concept of sending embarrassing pictures that could self-destruct.
Brown came up with the self-destructing message concept and the ghost logo for the app. He also suggested calling the app Picaboo. Spiegel, who was studying product design at Stanford, drew on his background to design and develop the user interface.
The Launch of Snapchat
The initial version of Snapchat, called Picaboo, launched in the iOS App Store in July 2011. Spiegel, Murphy and Brown continued developing and marketing Picaboo while enrolled at Stanford. By the end of 2012, Picaboo had been rebranded as Snapchat and was growing exponentially in popularity.
However, tensions arose between Brown and the other co-founders. In September 2011, Spiegel and Murphy unexpectedly moved to claim Picaboo/Snapchat as their own project and locked Brown out of the company. Brown was not given access to the servers or new product developments.
In February 2013, Brown filed a lawsuit against Spiegel and Murphy alleging that he was the third co-founder and was wrongfully deprived of his one-third interest in Snapchat. The case was settled out of court in September 2014 for an undisclosed amount.
Snap Inc.
While the lawsuit was ongoing, Spiegel renamed the company Snapchat Inc. in September 2013. He remained CEO along with Murphy who was CTO. They continued to rapidly grow Snapchat, reaching millions of users.
By 2014, large investment offers were coming in for Snapchat. In June 2014, Snapchat raised $485,000 in Series A funding. Then in December 2014, Snapchat raised $485 million in Series B funding led by Kleiner Perkins.
With Snapchat’s popularity surging, Spiegel renamed the company again in September 2016 to Snap Inc. This reflected the company’s expansion into additional products like the Spectacles camera glasses which launched in 2016.
Snap Inc. held its initial public offering in March 2017, debuting on the New York Stock Exchange for $17 per share. The IPO raised $3.4 billion and immediately turned Spiegel and Murphy into billionaires.
Snap Inc. Ownership
As of October 2023, here is the breakdown of ownership and control of Snap Inc., the parent company of Snapchat:
Leadership
- Evan Spiegel: CEO and member of the Board of Directors. He holds the majority of voting power in the company.
- Bobby Murphy: CTO and member of the Board of Directors
Board of Directors
- Michael Lynton: Chairman of the Board
- Joanna Coles
- A.G. Lafley
- Mimi Alemayehou
- Stanley J. Meresman
- Scott D. Miller
Top Shareholders
| Shareholder | Shares Held | Percent of Company |
|---|---|---|
| Evan Spiegel | 213,554,413 | 16.6% |
| Robert P. Murphy | 74,786,321 | 5.8% |
| FMR LLC | 54,863,767 | 4.3% |
| Vanguard Group, Inc. | 39,020,016 | 3.0% |
| JPMorgan Chase & Co. | 31,642,228 | 2.5% |
With about 16.6% of Snap Inc. voting power, co-founder and CEO Evan Spiegel maintains the largest individual stake in the company and control over its direction.
Conclusion
Snapchat began as a project by three Stanford students – Evan Spiegel, Bobby Murphy, and Reggie Brown. Spiegel and Murphy later ousted Brown from the company and retained control. They grew Snapchat into a wildly successful app with millions of daily users.
In September 2016, Snapchat was rebranded as Snap Inc. to reflect the company’s expanded products. Snap Inc. held its IPO in March 2017.
Today, Snap Inc. is a public company listed on the NYSE. CEO Evan Spiegel holds about 16.6% of voting power and control of the company. Co-founder Bobby Murphy owns around 5.8% of Snap Inc. and serves as CTO. The remainder of shares are owned by various institutional and individual investors. But Spiegel and Murphy together remain firmly at the helm guiding the future of Snapchat.