For decades, some of the same names — Pritzker, Crown, Wrigley — have ranked near the top of any list of Chicago's wealthiest people. And they have displayed it by tacking their names on everything from fountains to athletic fields to libraries.
But a company called Groupon, started less than three years ago by a graduate school dropout, is about to upend that.
If Groupon's initial public offering values the company at close to $30 billion, as some say it will, Chairman Eric Lefkofsky would become Chicago's richest man. His remaining stock in Groupon would be worth $6.48 billion. That excludes at least the $382 million he and his wife earned from prior sales of the stock and money generated from the IPOs of two other businesses Lefkofsky founded.
Put another way, Lefkofsky's remaining Groupon stock alone would exceed the entire net worth of Chicago's current wealthiest man, real estate magnate and Tribune Co. Chairman Sam Zell, whom Forbes estimated in March to be worth $5 billion.
At a $30 billion valuation, Groupon Chief Executive Andrew Mason would hold stock worth $2.31 billion. That would make the 30-year-old the fifth- or sixth-wealthiest person in Chicago on Forbes' list, behind Beanie Babies co-founder Ty Warner and ahead of hedge fund manager and Citadel CEO Kenneth Griffin. (Oprah is one step ahead of Warner.)
Company co-founder Brad Keywell, 41, would hold stock worth $2.07 billion through a family-controlled entity. He also would move into the top 10, possibly placing him ahead of Thomas Pritzker, Penny Pritzker and William Wrigley Jr.
There is no way to predict Groupon's worth until the IPO, plans for which were announced Thursday. But given the exuberant market for brand-name tech stocks, a high number is certain. Sources told the New York Times it will be $30 billion; others cite a lower number of about $20 billion.
Other people connected to Groupon also stand to become rich. Members of Chicago's tech community say it is important that some of those other people are midlevel Groupon employees, who later could use their wealth to start businesses.
"Even if only a fraction of that $6B gets into the hands of the twenty- and thirty-somethings running the show there it will be enough to shake up the tech and startup scene here in a very good way," Leon Chism, the chief technology officer of Analyte Health, wrote in a blog post in December, when Groupon was weighing a $6 billion offer from Google to buy the company, which it rejected.
Chism, however, added an important caveat: The city would reap a windfall only "provided our newly minted million- and billionaires don't head for warmer climes themselves. Or sit on their cash."
Although the three co-founders will become extraordinarily rich, they are expected to exercise that wealth differently from the old guard and possibly from each other.
"The way they're going to do things is hard for anybody to predict because it is going to be so creative and so entrepreneurial," said Mae Hong, director of the Chicago office of Rockefeller Philanthropy Advisors. "They're going to do things most people have not thought of before."
Lefkofsky echoed that thought in a long blog post he wrote last year about his business philosophy and Lightbank, the venture capital firm he and Keywell founded.
"We're drawn to creating things that don't exist, but should, and nothing like Lightbank exists," Lefkofsky wrote.
Lefkofsky sits on the boards of the Steppenwolf Theatre Company, Museum of Contemporary Art, Art Institute of Chicago and Children's Memorial Hospital. So far, his philanthropic work has been traditional, coming in the form of donations from his private family foundation. In 2009, the most recent year IRS records are available, the foundation gave its largest donations to the two art museums and the Jewish United Fund. In total, the couple gave more than $1 million.
That was before Groupon's ascent.
Lefkofsky is passionate about art, while Keywell is an avid reader. In addition to writing a book and co-authoring a children's book with his daughter, Keywell's website lists more than 60 books he recommends and states that he tries to regularly read 14 publications, from The Economist to Transport Topics to ARTnews.
Of the three co-founders of Groupon, Keywell has spent the most time on projects outside of Lightbank. In addition to leading Gov. Pat Quinn's Innovation Council, Keywell served on former Mayor Richard Daley's technology infrastructure council and his Chicago-China Friendship Initiative.
And Keywell has begun laying a legacy with Chicago Ideas Week, which will launch in October. Although the week will include several VIP dinners, most of the events, including lectures and behind-the-scenes tours of area businesses, will be open to the general public and cost $15 or less to attend.
"They could have a democratizing effect," Hong said of Groupon's founders. "They could lower the barriers to entry for ordinary people to participate in things they normally wouldn't be able to participate in. In a lot of ways, that was the whole premise of how Groupon started, making it easy for people to try new things."
Of all of Groupon's founders, the least is known about Mason's interests. That's largely because he has been known to work around the clock, calling Lefkofsky at home in the middle of the night, for instance. He has had time for little else.
But he is passionate about music and social activism. He majored in music as an undergraduate at Northwestern University and dropped out of the University of Chicago's graduate public policy program to start Groupon's predecessor, The Point. While Groupon leverages the masses to obtain discounts, The Point tries to leverage the masses to get involved in social causes.
Mason has started a small private foundation here, indicating a long-term commitment to the city. But he also has had some harsh words for Chicago as of late.
"My biggest mistake was waiting to open an office in Silicon Valley," he told technology blogger Kara Swisher during an interview at the AllThingsD conference in California last week, according to a live blog of his remarks. "Chicago is a great town, but it doesn't have the depth of talent that you guys have."
Perhaps he'll set out to use his new riches to change that.
Tribune reporter Wailin Wong contributed.
Melissa Harris can be reached at mmharris@tribune.com or 312-222-4582.
But a company called Groupon, started less than three years ago by a graduate school dropout, is about to upend that.
If Groupon's initial public offering values the company at close to $30 billion, as some say it will, Chairman Eric Lefkofsky would become Chicago's richest man. His remaining stock in Groupon would be worth $6.48 billion. That excludes at least the $382 million he and his wife earned from prior sales of the stock and money generated from the IPOs of two other businesses Lefkofsky founded.
Put another way, Lefkofsky's remaining Groupon stock alone would exceed the entire net worth of Chicago's current wealthiest man, real estate magnate and Tribune Co. Chairman Sam Zell, whom Forbes estimated in March to be worth $5 billion.
At a $30 billion valuation, Groupon Chief Executive Andrew Mason would hold stock worth $2.31 billion. That would make the 30-year-old the fifth- or sixth-wealthiest person in Chicago on Forbes' list, behind Beanie Babies co-founder Ty Warner and ahead of hedge fund manager and Citadel CEO Kenneth Griffin. (Oprah is one step ahead of Warner.)
Company co-founder Brad Keywell, 41, would hold stock worth $2.07 billion through a family-controlled entity. He also would move into the top 10, possibly placing him ahead of Thomas Pritzker, Penny Pritzker and William Wrigley Jr.
There is no way to predict Groupon's worth until the IPO, plans for which were announced Thursday. But given the exuberant market for brand-name tech stocks, a high number is certain. Sources told the New York Times it will be $30 billion; others cite a lower number of about $20 billion.
Other people connected to Groupon also stand to become rich. Members of Chicago's tech community say it is important that some of those other people are midlevel Groupon employees, who later could use their wealth to start businesses.
"Even if only a fraction of that $6B gets into the hands of the twenty- and thirty-somethings running the show there it will be enough to shake up the tech and startup scene here in a very good way," Leon Chism, the chief technology officer of Analyte Health, wrote in a blog post in December, when Groupon was weighing a $6 billion offer from Google to buy the company, which it rejected.
Chism, however, added an important caveat: The city would reap a windfall only "provided our newly minted million- and billionaires don't head for warmer climes themselves. Or sit on their cash."
Although the three co-founders will become extraordinarily rich, they are expected to exercise that wealth differently from the old guard and possibly from each other.
"The way they're going to do things is hard for anybody to predict because it is going to be so creative and so entrepreneurial," said Mae Hong, director of the Chicago office of Rockefeller Philanthropy Advisors. "They're going to do things most people have not thought of before."
Lefkofsky echoed that thought in a long blog post he wrote last year about his business philosophy and Lightbank, the venture capital firm he and Keywell founded.
"We're drawn to creating things that don't exist, but should, and nothing like Lightbank exists," Lefkofsky wrote.
Lefkofsky sits on the boards of the Steppenwolf Theatre Company, Museum of Contemporary Art, Art Institute of Chicago and Children's Memorial Hospital. So far, his philanthropic work has been traditional, coming in the form of donations from his private family foundation. In 2009, the most recent year IRS records are available, the foundation gave its largest donations to the two art museums and the Jewish United Fund. In total, the couple gave more than $1 million.
That was before Groupon's ascent.
Lefkofsky is passionate about art, while Keywell is an avid reader. In addition to writing a book and co-authoring a children's book with his daughter, Keywell's website lists more than 60 books he recommends and states that he tries to regularly read 14 publications, from The Economist to Transport Topics to ARTnews.
Of the three co-founders of Groupon, Keywell has spent the most time on projects outside of Lightbank. In addition to leading Gov. Pat Quinn's Innovation Council, Keywell served on former Mayor Richard Daley's technology infrastructure council and his Chicago-China Friendship Initiative.
And Keywell has begun laying a legacy with Chicago Ideas Week, which will launch in October. Although the week will include several VIP dinners, most of the events, including lectures and behind-the-scenes tours of area businesses, will be open to the general public and cost $15 or less to attend.
"They could have a democratizing effect," Hong said of Groupon's founders. "They could lower the barriers to entry for ordinary people to participate in things they normally wouldn't be able to participate in. In a lot of ways, that was the whole premise of how Groupon started, making it easy for people to try new things."
Of all of Groupon's founders, the least is known about Mason's interests. That's largely because he has been known to work around the clock, calling Lefkofsky at home in the middle of the night, for instance. He has had time for little else.
But he is passionate about music and social activism. He majored in music as an undergraduate at Northwestern University and dropped out of the University of Chicago's graduate public policy program to start Groupon's predecessor, The Point. While Groupon leverages the masses to obtain discounts, The Point tries to leverage the masses to get involved in social causes.
Mason has started a small private foundation here, indicating a long-term commitment to the city. But he also has had some harsh words for Chicago as of late.
"My biggest mistake was waiting to open an office in Silicon Valley," he told technology blogger Kara Swisher during an interview at the AllThingsD conference in California last week, according to a live blog of his remarks. "Chicago is a great town, but it doesn't have the depth of talent that you guys have."
Perhaps he'll set out to use his new riches to change that.
Tribune reporter Wailin Wong contributed.
Melissa Harris can be reached at mmharris@tribune.com or 312-222-4582.
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