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”



~ by seeker401 on November 18, 2016.

11 Responses to “Snapchat has filed for an IPO that could value the company at $25 billion”

  1. TPTB must be making an incredible amount of money that they need another virtual business to launder it through. I imagine the wizard behind Snap is of the berg clan?

  2. Bobby Murphy cofounded photo and video messaging app Snapchat –renamed Snap Inc. in late September 201 6 – with fellow Stanford University fraternity brother Evan Spiegel.

    Evan Spiegel
    Raised in the ritzy Pacific Palisades area of Los Angeles, the son of two Ivy League-educated attorneys, Spiegel enjoyed a cushy childhood, full of vacations, expensive cars and large monthly allowances, according to a lengthy profile in LA Weekly. After graduating from Crossroads, a private high-school in Santa Monica, Calif., Spiegel enrolled at Stanford, his father’s alma mater, where he majored in product design.

    If Spiegel is quick to acknowledge his privilege — “I am a young, white, educated male
    who ‘got really, really lucky,’” he said at a Stanford Women in Business conference – he’s also quick to point out that privilege isn’t everything. To truly succeed, one must capitalize on it. “It’s not about working harder; it’s about working the system,” he said.

    At Stanford, he did just that, aggressively networking in order to meet influential people including Google executive chairman Eric Schmidt and Intuit co-founder and chairman of the executive committee Scott Cook, who set him up with a job at the tech company while he was still a student.

  3. Reblogged this on Anthony Jerdine.

  4. Reblogged this on World Peace Forum.

  5. Snap stock suffers first major selloff since going public

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