The App Plans To Raise $4 Billion In IPO
By: Halla Congress
People jumped up in an instant when reports were published in the beginning of the month stating that the popular app Snapchat could begin selling parts of their shares as soon as March. After this release, a more recent report claims Snap Inc. will attempt to raise as much as $4 billion in its first initial public offering.
The IPO could value Snapchat anywhere from $25 billion to $40 billion, according to a report in Bloomberg News. The report didn’t site sources and said the plans are still in the air. According to the report, Snapchat has been preparing filings and plans to sell shares during the first quarter of next year – the goal is March. Do you know what this means for the friends who created this app? Word around town is Morgan Stanley and Goldman Sachs are the two companies with the highest offers. If everything unfolds as it is projected, Snap Inc. could be the largest company that decided to go public on a U.S. exchange since 2014.
Snapchat faces competition with a laundry list of other mobile apps such as Tumblr, Twitter, Instagram, Facebook and many more. However, unlike all of these applications, Snapchat doesn’t face the pressure of posting edited content due to their lack of the “likes” and “comments” feature that many others do – which is exactly why they are in the lead. Be different to stand out? I believe they’re doing just that.