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Klarna’s board has agreed to oust a key ally of co-founder Victor Jacobsson, underlining a deep governance rift at the Swedish buy-now pay-later company as it prepares to go public, according to people with knowledge of the process.
The directors recently agreed to remove Mikael Walther from the eight-person board, pending shareholders approval, the people said.
Jacobsson is himself one of the company’s top shareholders after founding Klarna along with current chief executive Sebastian Siemiatkowski almost 20 years ago.
Although he stepped down from an executive role more than a decade ago and maintains a low profile, Jacobsson has continued to be a thorn in the side of Siemiatkowski, snapping up shares in Klarna on the secondary market.
The move to oust Walther from Klarna’s board is the latest development in a power struggle between the two co-founders. At stake is the extent of Siemiatkowski’s influence over the company after an initial public offering, a person familiar with the matter previously said. Further details on the reasons for Walther’s ousting could not immediately be established.
Walther’s ousting would allow Siemiatkowski to consolidate his influence ahead of an IPO that could value the company between $15bn and $20bn.
The Financial Times previously reported that the board was considering Walther’s removal.
A spokesperson for Klarna declined to comment. Walther declined to comment.
The boardroom shake-up is the second this year after board member Matthew Miller, who represented major investor Sequoia Capital, sought to remove Michael Moritz, a Sequoia veteran and Siemiatkowski ally, as chair. The episode resulted in Miller’s replacement with another Sequoia partner.
Klarna has sought to tidy up its corporate structure ahead of one of the most anticipated new listings in recent years. The Swedish group has been lining up investment banks for an IPO that could take place in New York as soon as the first half of next year.
Klarna also weighed a sale of existing shares this year to allow some employees to cash out and bring in new investors. However bankers at Goldman Sachs, who were brought in to work on the possible deal, told at least one investor that the plan was unlikely to materialise. Goldman declined to comment.