CORNELL UNIVERSITY MEDIA RELATIONS OFFICEFeb. 2, 2017 Investors beware: Snap’s secrecy at odds with IPO

Drew Pascarella, lecturer of finance at the Samuel Curtis Johnson Graduate School of Management, says that the photo-sharing social network Snap, which officially filed for an IPO on Thursday, has a history of secrecy that is at odds with its now public profile.


Pascarella says:

“Investors, beware. Snap's dismissive behavior towards its underwriting syndicate is not totally uncommon in the tech world, but it may be a sign of a potentially antagonistic relationship with future shareholders.

“While I can certainly appreciate the need for confidentiality, Snap’s intense focus on secrecy is at odds with what public investors crave the most: transparency and disclosure.

“It will be interesting to see how Snap balances its desire to be secret with public investor’s demands for information. If Snap does choose a minimalist stance on disclosure as a public entity, my sense is that investors will give the Company an initial pass based on their early success, but will be relentless at first sight of trouble.”

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