Snapchat is reportedly working on a $25 billion IPO that could take place as early as late March 2017.
Snapchat's Upcoming IPO
According to The Wall Street Journal, the fast-growing virtual messaging company Snap Inc. is working on an initial public offering that could making it one of the highest-profile share, with a total value of $25 billion or more. If the company's IPO will materialize, then the startup would consolidate its in a highly competitive field.
According to The Huffington Post, after launching a line of sunglasses with built-in cameras, Snapchat renamed itself Snap Inc. last month. This is the second product of the Los Angeles-based firm, after its popular social network.
The fast-growing company will make its initial public offering by late March. According to market analysts, this might become one of the most closely watched stock market debuts in years. The company's virtual messaging application has become very popular and Snap's value and prominence has constantly growing over the last five years.
Snapchat's Performance
In May, Snap made it on the list of the top five most valuable privately held startups worth over $1 billion, with company's worth surging to nearly $18 billion. With 150 million people using its service daily, the company had surpassed Twitter in number of users by June. From last December, this means a 36 percent increase. By contrast, ten-year-old Twitter, had just 140 million active users every day.
Snap would be a high-profile tech IPO, being well positioned for this move. Even if it has yet to turn a profit, the company makes money, according to Los Angeles Times. For instance, tapping its popularity with the teenage demographic, Snap started charging advertisers last year as much as $750,000 a day for TV-style ads.
Earlier this year, Snap told investors that the company is expected to earn between $250 million and $350 million in 2016 revenue. By next year, Snap could earn as much as $1 billion.
