Snapchat has filed for an IPO that could value the company at $25 billion
Snapchat parent company Snap Inc. has quietly filed paperwork for an IPO, setting the wheels in motion for what’s expected to be the largest tech debut in years, a source familiar with the matter told Business Insider.
Snap’s IPO could come as early as March, but could also occur in the second quarter of 2017, the person said. The company is seeking a valuation of $20 billion to $25 billion.
Some people expect the offering could be even larger. Bloomberg has reported that Snap’s IPO valuation could swell as high as $40 billion.
Snap, which is based in Venice Beach, California, confidentially filed its paperwork with the US Securities and Exchange Commission before the presidential election, according to The Wall Street Journal.
Morgan Stanley and Goldman Sachs will lead the deal, while JPMorgan, Deutsche Bank, Allen & Co., Barclays, and Credit Suisse will be joint bookrunners.
Snapchat has emerged as one of the most popular consumer internet services, challenging Facebook, Twitter and Google for users and advertising dollars. With the tech IPO market stuck in the doldrums over the past year, investors are hoping Snap’s offering could open the gates to more IPOs, including closely watched tech companies like Uber.
Snap has told investors that it expects to make between $250 million and $350 million in advertising revenue this year. A recent eMarketer report predicted the company would near $1 billion in revenue in 2017 — meaning an IPO that valued the company at $25 billion would be 25 times its projected revenue numbers.
It’s not clear whether Snap is profitable however, and the company is aggressively expanding into new businesses and markets that are likely to eat into margins.
Snap’s main business is advertising in the Snapchat app, which has over 150 million daily users. But it recently rebranded itself as a camera company and started selling $130 camera-equipped sunglasses called Spectacles.
“Morgan Stanley and Goldman Sachs will lead the deal, while JPMorgan, Deutsche Bank, Allen & Co., Barclays, and Credit Suisse will be joint bookrunners.”
the usual suspects..
and what is your product snapchat?
it must be incredible to be valued at over $20 billion?
you dont have a product?
how do you spell bubble?
“It’s not clear whether Snap is profitable however”