Snapchat files for IPO


Snap Inc, the parent company of Snapchat, has recently filed a confidential initial public offering (IPO). Reuters reported that Evan Spiegel’s company could go public as soon as March. The social networking platform, which is valued at $20-25 billion, will be a step closer to the biggest U.S. stock market debut since 2014. Latest reports from Bloomberg estimate that Snap Inc is set to raise $4 billion.

Snapchat started in 2012 and now has more than 100 million active users, of which an estimated 60 percent are aged 13-24. This makes it a great source of advertising to the younger generation. The company told its investors it expects to make between $250 and $350 million in advertising this year.

Snapchat filed with the Securities and Exchange Commission under the U.S. Jumpstart Our Business Startups Act. Companies with less than $1 billion in revenue can secretly file for an IPO, allowing them to quietly test investor appetite while keeping financials confidential.

Earlier this month, Alphabet Inc (Google) disclosed an investment in Snapchat when they added the messaging app’s logo to a page on its investment portfolio website.

Jess is the lead news editor for Australia Business. When she's not writing and reading about business, she's probably endlessly scrolling through Instagram or downloading apps she may or may not need.