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Friday, April 17, 2015

Snapchat Is Paying Ex-Apple Exec Scott Forstall 0.11% To Be An Advisor

leaked email from the Sony Pictures hack indicates Snapchat set aside .11% of its stock for former Apple head of iOS Scott Forstall to be an advisor.
Michael Lynton, Sony Pictures’ CEO, is a Snapchat board member, so when his email was stolen by hackers protesting the release of The Interview, sensitive Snapchat information came to light. WikiLeaks recently made those emails easier to access.
When asked about the company’s relationship with Forstall, Snapchat didn’t deny the connection, simply replying “We have a number of advisors, but we don’t comment on the specifics of their relationship with the company”.
snapchat
In February 2014, Snapchat granted stock options to a number of key employees. For example, former VP of engineering Peter Magnusson who was poached from Google but ended up leaving 6 months later, was slated to get 0.5% of Snapchat. Several software engineers were granted 0.022%.
But given Forstall’s prestigious pedigree and fame for leading Apple’s iOS division, he was granted a wopping .11% fully-dilluted for merely being an advisor, with the options vesting over 24 months.
If Forstall completes his vesting schedule, that stake would be worth $16.5 million judging by the $15 billion valuation Snapchat was recently reported to be raising money at. And given Snapchat’s strong momentum, Forstall’s equity could be worth much more soon.
Other surprises that came out of the emails when they originally leaked in December include that:
  • The acquisition offer Snapchat turned down from Facebook was significantly bigger than $3 billion
  • Snapchat has explored the idea of a music feature
  • Snapchat spent $30 million to acquire AddLive’s synchronous video tech,
  • Snapchat bought Scan’s QR code scanning system that would power QR Snaptags for $50 million
  • Snapchat bought eyeglass computer startup Vergence Labs for $15 million

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