Snapchat Preparing $25 Billion IPO, Report Says

Snapchat Preparing $25 Billion IPO, Report Says

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Snap Inc., formerly known as Snapchat, is preparing an initial public offering (IPO) which could value the company at $25 billion or more. This would make it the highest public market debut in recent years.

The company is considering offering shares to the public as early as March 2017, according to the Wall Street Journal, but there is no surety that it will proceed within this time frame or that it will fetch the expected valuation. If everything goes according to the company’s plans, it will be the biggest IPO in the U.S. since Alibaba’s in 2014, which valued the Chinese company at $168 billion.

The company has seen dramatic revenue growth since it started running advertisements on its popular photo- and video-sharing app. Research firm eMarketer forecast the company would generate $366.69 million in 2016 — a figure expected to jump to a whopping $935.46 million in 2017.

Cathy Boyle, principal analyst at eMarketer, said: “Advertisers are attracted to Snapchat for its broad reach among young millennials and those in Generation Z, which are valuable demographic groups for many businesses.”.. see more

source: ibtimes