Snapchat co-founders become newly minted billionaires

Co-founders and Stanford University graduates Evan Spiegel and Bobby Murphy are now worth an estimated $5.5 billion each, after their IPO for Snap Inc. started trading at the NYSE on Thursday.
5:21 | 03/03/17

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Transcript for Snapchat co-founders become newly minted billionaires
Now we get to somebody who is warm and happy. Snapchat. Big news interest that company. The young founder of the company now worth more than $5 billion each after the social media company went public and Rebecca Jarvis is here with more on that and good morning, Rebecca. Reporter: Quite an incredible story, Michael. To hi this all started just six years ago, they came up with the idea as students at Stanford were laughed out of class, well, guess who is laughing this morning with Snapchat's CEO drawing comparisons to the next Mark Zuckerberg. 24 hours after ringing the bell to kick off its first day of on the New York stock exchange, Snapchat co-founders Evan Spiegel and Bobby Murphy are watching their fortunes grow and grow. The 20-something tech moguls now worth an estimated $5.5 billion each. They have just been so successful. They launched this company less than six years ago in 2011 and, you know, it's grown just exponentially. Reporter: Spiegel snaps notoriously private CEO rarely appearing on social media or granting interviews. You can always take a screen shot. Reporter: But his fiancee Miranda Kerr happily bringing her followers along for the big day Thursday. Reporter: It's that kind of along for the ride experience with its photos and videos that disappear 24 hours after being posted favored by celebrities and often enhanced by one of the platform's popular filters. Many people believe that it could be the third, you know, great advertising platform out there after Facebook and Google. Reporter: Turned Spiegel into a silicon valley darling and into one of Facebook's worst nightmares. Facebook chief Mark Zuckerberg famously trying and failing to buy the social media platform for Ang estimated $3 billion in 2013. And as for that Forbes 500 richest list Spiegel is clocking ahead of George Lucas and Steven Spielberg. He is outearning fellow entrepreneur Richard Branson at this point and as of today according to those "Forbes" estimates even has a bigger bottom line than president Donald Trump. You'll get a tweet now. Exactly, exactly. Well, or a snap. Maybe he can get into that but the question I had for this company is, is it more Facebook or is it more Twitter? If it's Facebook, Facebook's stocks since ipo day up 250%. Twitter has cut its value in half. I like your Snapchat dress by the way. I had to wear it to match with the spectacles. Very nicely done. Ready to go. We'll bring in best-selling author Ken Auletta who covers the tech world for "The new Yo Yorker." We talked about Facebook, young kids in college figure out something that they think they like and it goes out to the world and they become billionaires so it Evan Spiegel the next mark Sumner Redstone. When he has 2 billion users he might be but he doesn't. He has 150 million. 150 million. But snap, it seems to me, though, it has cornered the millennial market. Millennials and the generations behind millennial, that's part of their appeal reaching a younger audience and their communications are dissolving which they like for the privacy reasons. Now, now that the company has gone public is this in any way affect the users out there. It might. I mean the problem he has is how does he get more advertising? 98% of the revenues come from advertising so the question is, if you are losing $500 million which is what they lost in 2016, how do they get more revenue? Heavy to have more ads and that could affect users. That could affect users. The more ads popping up. Being annoyed by it. More things in your face. Now, let's be frank about Snapchat. When it first started it was more of a sexting app because it disappeared after you posted it but has this shaken the branding of the company? Well, no, I think they're doing very well. It's interesting when I was doing a piece on Stanford for "The new Yorker" four, five years ago I sat in a meeting with a professor at the business school and one of his students who was pitching an idea for something for pictures that would dissolve after second seconds. It was Evan Spiegel of Snapchat and I'm sitting there watching and I said this a crazy idea and followed him for the next two months and Google turned down investing in his company at the time and he was a believer that it was going to work and yesterday proved it. We can speak from personal experience. Our daughters live on Snapchat. And they do a lot more than just send messages to friends. They get their news on Snapchat. Absolutely. No, no, he's been very inventive. You pointed out the sunglasses. It's the cameras and discovery where people put their stories. Filters, everyone loves those filters. Exactly. Those filters. The other thing that's really big about them and it matters a lot and where advertisers have a stake in their success, they want to get away from reliance on Facebook and Google, Snapchat is the horse they're betting on that might become a rival to them and that's a big deal. I tell you what these guys are smart and turned down $3 billion. It took some guts. It worked. Passion. Coming up in two minute, former NFL stars jumping in to

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