Snapchat Preparing for IPO that Could Value the Company at US$25 billion

What: Snap Inc., the parent company of Snapchat,  is said to be working on an initial public offering for March.
Why it matters: The IPO, which may value the company at US$25 billion, could be the largest IPO since Chinese e-commerce giant Alibaba went public.

wesrmsya_400x400Snap Inc., the parent company of Snapchat,  is said to be working on an initial public offering for March that could value the company at US$25 billion, The Wall Street Journal reports.

The March timeline is arbitrary, given uncertainties like the outcome of the presidential election and the state of the capital markets, according to the source. The company hasn't even hired bankers yet, although is expected to do so by December.

This could be the largest IPO since Chinese e-commerce giant Alibaba went public in 2014, sources told The Wall Street Journal.

Last May, the company was valued at US$17.81 billion and received US$3.1 million in advertising revenue for the first 11 months of 2014, Reuters reports.

The company has told investors that it expects to make between US$250 million and US$350 million in advertising revenue this year, according to The Journal.

The company will reach near US$1 billion in revenue in 2017, which means a US$25 billion IPO would be priced at 25 times its projected revenue numbers.

Apparently, the company was looking to go public as soon as later this year or early 2017. Snap's chief strategy officer, Imran Khan, is part of the team that is working on the filing

 


Editorial Staff

Portada Staff

MORE FROM PORTADA

AB InBev Awards U.S. Media Account to Dentsu Aegis Network

AB InBev Awards U.S. Media Account to Dentsu Aegis Network

Brewing giant AB InBev has named Dentsu Aegis Network’s Vizeum as its new agency for the U.S. and Canada.


BRAND MARKETING RESEARCH: Apple, Google World’s Top Brands

BRAND MARKETING RESEARCH: Apple, Google World’s Top Brands

A summary of the most exciting recent research in brand marketing in the U.S., U.S.-Hispanic and Latin American markets. If you're trying to keep up, consider this your one-stop shop.


Marketers Use Social Media to Boost Sponsorships: ANA STUDY

Marketers Use Social Media to Boost Sponsorships: ANA STUDY

Social media — particularly Facebook, Twitter, and Instagram — has emerged as a key component in supporting sponsorship activations among a great majority of marketers, according to a new study by the ANA (Association of National Advertisers).