Good morning, Austin and Happy Friday! Here’s the most talked-about tech news from the last 24 hours:
Snapchat files for its IPO
This filing marks the first chance the public is able to get detailed financial information about Snapchat and its business operations.
According to the New York Times, the filing says Snap Inc. built a $405 million advertising business in just over two years. There is no filing price disclosed, but the Times says Snap is expected to seek a market valuation of $20 billion and he filing says they want to raise $3 billion.
Also: A Bloomberg piece discusses how Snap is trying to distance itself from Twitter, one of the last big tech IPOs. Bloomberg notes that Snap’s numbers show that user growth is slowing and losses are mounting.
Snapchat filing reveals massive payout to third founder Reggie Brown
When they go public, Snapchat co-founders Bobby Murphy and Evan Spiegel will become billionaires.
But there is a third co-founder, Reggie Brown, who filed a lawsuit against Snapchat when he was forced out of the company and not given an equity stake, Business Insider says. Snapchat’s filing on Thursday reveals Brown was paid a $157.5 million settlement.
Snap said it agreed to give to pay him $50 million in cash in 2014 and $107.5 million in 2016. It was less than the $500 million he originally asked for.
Uber CEO leaves Trump advisory board after travel ban uproar
A “Delete Uber” movement erupted this week because some people believed the company was seeking to profit from giving rides to airport customers in New York during protests over President Trump’s temporary travel ban.
The New York Times reports that more than 200,000 customers deleted their accounts as a result. So employees pressured Uber CEO Travis Kalanick to quit a Trump economic advisory council. On Thursday, he agreed to do it.
In an email to the Times, Kalanick said “there are many ways we will continue to advocate for just change on immigration, but staying on the council was going to get in the way of that.”
News on Open Source is free and unlimited. Access to the rest of 512tech.com comes with an American-Statesman digital subscription, which also includes myStatesman.com and the ePaper edition. Subscribe at statesman.com/subscribe.