Snapchat reportedly files for IPO, could be valued at 25 billion dollars

21.11.2016

The much-awaited initial public offering of Snapchat might be coming as early as March next year, TechCrunch reported last week. The confidentially filed paperwork may value the messaging platform at an insane 25 billion dollars, which would be one of the biggest IPOs in recent years.


Looking at US tech IPOs, Snapchat might be making the biggest debut since Facebook. Back in 2012, the social media platform of Mark Zuckerberg had its initial IPO and was valued at 81 billion dollars. Internationally speaking, Alibaba was the last huge IPO, the e-commerce giant from China was valued at 171 billion back in 2014. So what speaks for Snapchat getting valued so high?

Quite simply, momentum. Snapchat has 150 million daily active users and has been growing at a very rapid rate. While other social media services are suffering from stagnation (hi, Twitter!), the ephemeral messaging service has found a nice cushy spot in the heart of millennials. It’s not just Twitter, though. Facebook is reaching its limits with little space to growth and Pinterest recently disappointed with a much lower than expected revenue.

What is more, the company is managing to stay cool in the eyes of the public and surprises with new products. Just last week, we reported on Spectacles, Snapchat’s variation of Google Glass. They’re meant to be quirky and fun, which is why they might avoid a lot of the scrutiny that Google’s product had to face.

As long as Snapchat keeps its momentum, the coming IPO appears to be a certain success. And with even more financing coming in, who knows what the company will attempt to surprise us with in the future?


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Source: https://techcrunch.com/2016/10/04/pinterest-lagged-behind-leaked-revenue-forecasts-in-2015/
Pic: ©MIH83
 
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