Snap, Inc., the parent company of Snapchat, has filed for an initial public offering. It implies that the messaging company is on the verge of making the biggest U.S. stock market debut since 2014.
Sources from Wall Street Journal claim that the IPO can value the company at somewhat around $20 billion and $25 billion. It will make Snapchat the largest IPO since Alibaba Group Holding Ltds, who were valued at $170.9 billion two years ago.
Since Facebook which was valued at $104 billion, Snapchat is the only U.S. based technology IPO to be valued this highly, according to sources.
The news initially surfaced in October when Snapchat was deciding to go public. The estimation of the company was round about the same, even then.
No official confirmation has been received from Snapchat on the matter, as the company also declined to respond to an email sent by tech publications. However, it is safe to claim that Evan Spiegel, Snapchat CEO, will have a grand wedding after this.
- Investors have been told to expect $1billion in advertising revenue in 2017, according to various sources.
- Company is said to have received $3.1million in advertising revenue.
- User base in U.S. alone is expected to reach 58.6million by the end of this year.
- According to eMarketer, the user base number can rise to 66.6million by 2017.
- Snap estimates it has more than 100million users globally of the service for sending videos, images and text messages which vanish after being viewed.
- Various reports claim that Snapchat generates 10 billion video views per day.