Who owns Telegram, the privacy-focused messaging app that keeps growing in popularity? With its focus on secure communication and defiance of authority, Telegram is far from your typical Silicon Valley start-up. Let's unpack Telegram's ownership and strategic direction with an overview of its key stakeholders and a review of its core philosophies.
Who owns it?
Who is the owner of Telegram?
Pavel Durov and his brother Nikolai founded Telegram in 2013. Pavel is the visionary entrepreneur, focusing on the strategic and business aspects of the platform. Nikolai manages the technical side, leveraging his deep expertise in cryptography and software development to enhance the messaging system's security and efficiency.
After being ousted from the Facebook-like VK service, the brothers founded a company briefly called Digital Fortress to manage the Telegram messaging app. VK experienced several skirmishes with Russian authorities when Pavel Durov consistently refused to share customer data or shut down accounts critical of the government.
The new service started life in London with a focus on strong encryption and privacy features. VK lives on as a popular social media platform in Russia, combined with the Mail.ru online services empire.
Telegram's infrastructure runs on a global network of data centers, while the company's operating center has moved between places like London, Berlin, and Singapore mainly to navigate and adapt to international data privacy laws and maintain operational flexibility. In the spring of 2024, Telegram's headquarters were in Dubai, United Arab Emirates, but Pavel Durov has said the office could move again if local data-sharing regulations change.
The client software is open-source, allowing anyone to review the app's encryption, security policies, and other code-based questions. The server-side code is not public. Telegram argues that sharing that code wouldn't boost security because observers can't verify that the public code is exactly what runs on the operating servers.
Moreover, sharing that code could help "authoritarian regimes" launch competing messenger apps with the same features but redesigned to support their oppressive policies. That's not the legacy Telegram wants to create. "We are not ready to betray our values because a few confused users seem to think publishing server-side code will somehow improve verifiability," Pavel Durov said in a public Telegram post in January 2021.
This is a common practice in the software industry, where end-user programs often come with publicly published source code, while server-side code remains proprietary to protect operational integrity and prevent misuse.
Largest shareholders
Who are the largest shareholders?
Telegram has never published any details about its ownership structure. That may change in the future as the company prepares to go public someday. An initial public offering (IPO) may seem incompatible with Telegram's fiercely independent ambitions, but Pavel Durov sees community value in a financially stable version of the messaging system.
"The main reason why we started to monetize is because we wanted to remain independent," he said while discussing the IPO idea with The Financial Times in March 2024. "Generally speaking, we see value in it as a means to democratize access to Telegram's value."
Until then, Pavel appears to be the principal owner of the Telegram business. Nikolai may hold a smaller ownership stake, but most observers see him as a technology-focused employee more than a visionary partner. He is an important figure in Telegram's history. Still, Pavel manages the business end and serves as the company's public face.
The company has raised money from several investors over the years, including the Abu Dhabi Catalyst Partners fund and its parent organization, the Mubadala Investment Company.
Long story short, Pavel Durov is broadly seen as the owner and operator of Telegram. Other shareholders may exist, but their stakes can't hold a candle to Pavel's controlling interest. If Telegram proceeds with an IPO, more information should become available to clarify the ownership structure.
Board of directors
Who is on the board of directors for Telegram?
Telegram isn't organized as a traditional corporation, with a board of directors steering the long-term strategy and an executive team running the day-to-day business. Instead, Pavel Durov calls the shots, and Nikolai Durov manages the technical development efforts, and they are supported by a growing group of employees.
The closest thing to an official board is former Morgan Stanley (MS 0.17%) executive John Hyman, who serves as Telegram's chief investment adviser. Even if you count Nikolai Durov and John Hyman as unofficial board members, the company is still firmly under Pavel Durov's control.
A future IPO would likely involve selling less than half of Telegram's stock on the open market, similar to the minority-interest stock sales offered by Mark Zuckerberg's Facebook (META 0.62%) or Larry Page and Sergey Brin's Alphabet (GOOG 0.84%)(GOOGL 0.87%). Facebook (now Meta Platforms) is under Zuckerberg's eternal control, while Page and Brin will always have the last word in Google's (now Alphabet) boardroom votes.
How to invest
How to invest in Telegram
Telegram is a private company. By all reports, Pavel Durov owns essentially the whole company.
That may change, though. Durov has talked about raising cash in an IPO, making Telegram a publicly traded stock. As of the spring of 2024, that's an idea for the future, and no official paperwork has yet been filed in pursuit of an IPO.
So, Telegram isn't an investment option yet, but you can invest in other technology companies in the social media and online communications arena. For example:
- Meta remains a giant in the field, with social media platforms Facebook, Instagram, and WhatsApp under its belt.
- Snap (SNAP 2.39%) runs the privacy-oriented Snapchat messaging service.
- Weibo (NYSE:WB) is a Chinese company with several social media services, including platforms similar to Snapchat and Twitter, with a Chinese focus.
- Twilio (NASDAQ:TWLO) doesn't run social media systems but provides communication features and development assistance to many companies in that space.
Mind you, Telegram was not designed to turn a profit. Pavel Durov initially funded its operations out of his own savings, and advertising is still restricted to broadcast channels. One-on-one discussions and group chats are ad-free and should remain so for the foreseeable future.
"All parts of Telegram devoted to messaging will remain ad-free," Pavel Durov said in a public Telegram post in December 2020. "We think that displaying ads in private 1-to-1 chats or group chats is a bad idea. Communication between people should be free of advertising of any sort."
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And since investors largely expect to share the underlying business operation's long-term cash profits, a profit-dodging organization like Telegram may not look like a strong choice.
Then again, not chasing optimal profits isn't always a deal-breaker. Open-source software can lead to a $34 billion buyout -- as was the case when IBM (IBM -0.96%) acquired Red Hat -- and computer-driven insurance company Lemonade (LMND 6.33%) donates excess profits to charities. Telegram may end up with a similar story.
FAQ
Who owns Telegram: FAQ
Which country owns Telegram?
No country owns Telegram. In fact, the Durov brothers keep moving its headquarters from one country to another as the information-sharing regulations change in each market. Currently based in Dubai, Telegram could very well move its operating base to another city in a different nation at any time.
The Durovs were born in St. Petersburg, Russia. However, they have shunned any ties to that country. Pavel currently holds citizenship in France, the United Arab Emirates, and the Caribbean nation of St. Kitts & Nevis.
How safe is Telegram?
Telegram's basic chats are encrypted in transit, using a custom encryption protocol based on the SHA-256 industry standard. It is designed to transfer large files securely over unreliable mobile connections. It also offers "secret chats," which don't rely on any public security keys and can be set to auto-delete.
When used with two-factor identification and tight privacy settings (such as keeping your phone number secret), security experts see Telegram as a stable and secure communications service. In particular, secret chats can't be traced and are quite difficult to read unless you're part of the conversation.
So, Telegram is a solid messaging choice from a privacy and security perspective, but competing services can put up a real fight. Some researchers prefer WhatsApp's default end-to-end encryption, and the Signal app's strict privacy focus and minimal data collection puts it a step ahead of Telegram in many ways.
However, the alternative solutions can't compete with Telegram's ability to broadcast messages to enormous recipient groups, and many users prefer its almost ad-free experience.
Who is the owner of Telegram?
Pavel Durov founded Telegram in 2013 and effectively still owns the entire company. Other investors and partners may hold small shares of the business, but the company has not divulged its ownership details and probably won't unless/until it launches an IPO. At that point, regulators would require specific ownership info, and public shareholders would become a part of the equation.
Is Telegram a public company?
No. Pavel Durov effectively owns the company, although a couple of investors may have established a small ownership stake. Telegram could enter the public market in the future. Until then, there is no way for ordinary investors to take part in this messaging system's potential value gains.
