T. Rowe Price appeared to be mounting a challenge to a plan by Snap Inc.’s founders to exert control in their IPO. But the move may prove to have all the permanence of a Snapchat.
In what Business Insider called an “extreme approach” to ensuring that founders Evan Spiegel and Bobby Murphy maintained control of the company, Snap’s IPO reportedly includes plans to only sell non-voting shares.
But the Baltimore investment giant, which is one of Snap’s biggest backers, didn’t seem pleased. CEO Bill Stromberg told the Australian Financial Review that the firm is “quietly and persistently advocating for change.”
When the story got out on Thursday, however, it wasn’t so quiet. T. Rowe Price issued another statement by the end of the day, backing away from the idea it was pushing for change. Here’s the full statement:
Contrary to certain news reports, T. Rowe Price is not contesting the plan by Snap Inc. to issue non-voting shares in its impending initial public offering. We believe that our investment in Snap continues to be in our clients’ best interests. We maintain a good relationship with Snap and its management team and look forward to further constructive conversations in the future. While we generally do not favor proposals that would create disproportionate voting rights, we evaluate each proposal on a case-by-case basis solely with the best interests of our clients in mind.
Snap’s IPO could net up to $25 billion.