Snapchat's parent company is taking "founder control" to another level as it inches toward an IPO later this quarter. The company is planning to issue non-voting stock to investors in its IPO, as it did in its previous private funding round, according to the Wall Street Journal. In November, The Information spotted the move in a newly filed document in Delaware.

What this means: Evan Spiegel and Bobby Murphy will have more than 70% of the voting power and 45% of the stock.

In context: While a bit more extreme than past cases, dual-stock structures aimed at leaving founders in control are not unseen, especially in Silicon Valley. Facebook and Google are two well-known examples. The rationale is usually that the founders want to keep taking big bets or having flexibility without a board telling them what to do (too much).

The fine print: Snap's setup also includes some protections for public investors, according to the WSJ's sources. If the founders' stock falls below 30%, all shares will convert to common stock. And if either founder dies, his shares can't be transferred—a clear signal that Snap believes the founders have a unique vision for the company that can't be imitated.

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 3 a.m. ET: 31,605,656 — Total deaths: 970,934 Total recoveries: 21,747,491Map.
  2. U.S.: Total confirmed cases as of 3 a.m. ET: 6,897,432 — Total deaths: 200,814 — Total recoveries: 2,646,959 — Total tests: 96,612,436Map.
  3. Health: The U.S. reaches 200,000 coronavirus deaths — The CDC's crumbling reputation — America turns against coronavirus vaccine.
  4. Politics: Elected officials are failing us on much-needed stimulus.
  5. Business: Two-thirds of business leaders think pandemic will lead to permanent changes — Fed chair warns economy will feel the weight of expired stimulus.
  6. Sports: NFL fines maskless coaches.

Trump pushes to expand ban against anti-racism training to federal contractors

Trump speaking at Moon Township, Penns., on Sept. 22. Photo: Mandel Ngan/AFP via Getty Images

President Trump announced late Tuesday that the White House attempt to halt federal agencies' anti-racism training would be expanded to block federal contractors from "promoting radical ideologies that divide Americans by race or sex."

Why it matters: The executive order appears to give the government the ability to cancel contracts if anti-racist or diversity trainings focused on sexual identity or gender are organized. The memo applies to executive departments and agencies, the U.S. military, federal contractors and federal grant recipients.

Louisville declares state of emergency as Breonna Taylor decision looms

A demonstrator holds up a sign of Breonna Taylor during a protest in Louisville, Kentucky. Photo: Brandon Bell/Getty Images

Louisville Mayor Greg Fischer declared a state of emergency Tuesday "due to the potential for civil unrest" ahead of Kentucky Attorney General Daniel Cameron's expected announcement on the Breonna Taylor case.

Of note: Louisville has witnessed more than 115 days of protests over the police killing of Taylor, an unarmed Black woman, with calls for all the officers involved to be charged.

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