Snapchat files for $25 billion IPO

Earlier, in an October report, the Wall Street Journal had said that the valuation of Snap as a result of an IPO would probably be $25 billion or more.

It has always been rumored that Snapchat – renamed recently to Snap Inc., – is going to file for a public offering to raise billions of dollars.

The technology company’s major source of revenue is advertising sales and has reportedly generated more than $350 million in revenues this year.

Before a company can actually go public, it has to file paperwork with the Securities and Exchange Commission.

The Snapchat app is now one of the undisputed kings of social media, with over 100 million monthly active users and a growing ad revenue stream.

That “beyond” will be the big question hanging over Snap’s possible IPO.

Snap, owner of the popular short-lived video- and photo-sharing site Snapchat, is filing to make a confidential IPO, CNBC, Reuters and Bloomberg reported Tuesday.

Snapchat declined to comment on reports of the IPO, which would likely be the largest since China’s Alibaba hit the market in 2014.

The owner of photo-sharing app Snapchat is reportedly lining up a flotation on the USA stock market that could value it at up to $25 billion (£20 billion).

It is a way of testing whether there is enough investor interest.

Snapchat has gained wide popularity among teenagers and millenials since its incorporation in 2012, with its unique platform in which users send pictures which vanish seconds after they are sent. The photo-messaging app is aiming to raise about $4 billion with a valuation of about $25-$35 billion.

Given that nearly 62% of Snapchat users are aged between 13 and 24, companies will see the app as a valuable platform for advertising to young people.

That said, those figures are growing, the company is diversifying, and the many young people who use Snapchat are really into it.