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.
“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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