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Snapchat's IPO is Going to Be a Blockbuster
Snapchat is looking to raise as much as $4 billion for its initial public offering that could value the social media company at $25 billion to $40 billion, Bloomberg reports.
The Los Angeles-based company, which recently changed its name to Snap Inc., is currently in the process of preparing filings for its listing and is aiming to begin selling shares at the beginning of next year, according to Bloomberg. It has hired Morgan Stanley and Goldman Sachs to lead its offering.
Bloomberg notes that Snapchat’s private market value reached $18 billion after its last funding round, which would make its IPO the biggest for a social media company since Twitter’s in 2013. It would be the most significant consumer-tech IPO since Match Group Inc. – which owns the online dating sites Match.com, OKCupid and Tinder – made its listing in November 2015, Bloomberg reports.
Here’s a little background for those not in Snapchat’s target demographic: It started as a selfie app with the idea that its images and messages would be self-deleted shortly after they were sent. The temporary nature of this messaging system gave Snapchat an early reputation as an app designed for young people to “sext” to one another.
However, Snapchat has since evolved into a multimedia platform for videos, news, sports and messaging. The app was designed by Evan Spiegel, Bobby Murphy and Reggie Brown while they were students at Stanford and was launched in 2011.
Bloomberg notes that Snapchat’s listing could signal a resurgence in the IPO market for the tech industry next year, after a slow 2016. There were only nine IPOs for U.S.-based tech companies this year, the lowest in seven years, according to Bloomberg.
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