Is Telegram’s IPO at risk?
In March, Durov told the FT that he had rejected offers from potential investors who valued the company at more than $30 billion and that plans to list it on the stock exchange were moving forward.
However, experts cited by the newspaper warn that a potential listing will be difficult if advertisers avoid the platform due to the alleged presence of child sexual abuse material on it.
Durov faces preliminary charges in France over his alleged failure to respond to criminal material on Telegram, with one of the charges carrying a sentence of up to 10 years in prison.
The development is disastrous for Dubai-based Telegram, which has been ramping up efforts to monetise its content by introducing subscription plans and advertising offers as it aims to become “financially self-sufficient” ahead of a possible stock market listing by 2026.
Telegram’s financial situation
Telegram’s 2023 financial statements, seen by the FT and previously unreleased, show that the company generated $342 million in revenue last year, with an operating loss of $108 million. Total losses were about $173 million after tax.
Telegram is wholly owned by Durov, who has a multibillion-dollar fortune, but the company has raised about $2.4 billion by selling bonds that mature in 2026. Telegram’s bond price has fallen almost 10 percent since Durov’s arrest at an airport outside Paris.
The FT writes that it is unclear whether Durov will be able to continue to run Telegram, or whether this task will fall to a small group of loyal subordinates, noting that the company has a very centralized management. Durov said in the interview with the newspaper that the company employs only about 50 people, including 30 strictly vetted engineers, and that he chose the team himself, organizing programming competitions.
Porsche on Telegram
The source quoted by the FT describes Telegram employees as typically “super young” people from Eastern Europe who receive annual salaries of half a million dollars and soon post photos of their new Porsches on social media.
“There is virtually no turnover. Employees share the same values and believe in the company’s mission,” Durov told the FT. The newspaper emphasizes that he is key to decision-making, and despite Telegram having almost a billion users, Durov compares the way it operates to a start-up. “I don’t like to see myself as a co-CEO, owner or anything. I like to see myself as a product leader. No feature is launched without my deep involvement,” he explained.
The centralized leadership style raises questions about “whether Telegram can exist without Paul,” said Aleksandra Urman, a researcher at the University of Zurich and an expert on social media.
Following Durov’s arrest, the company said he had “nothing to hide” and that “it is absurd to claim that the platform or its owner is responsible for abuses on the platform” and that its moderation is “in line with industry standards.”
From London Bartłomiej Niedziński (PAP)