Snapchat IPO Filing Comes to Light with Questions Remaining

Snapchat IPO Filing Comes to Light with Questions Remaining

It looks like Snapchat is finally going public.

According to a Reuters, the company has confidentially filed for an initial public offering of its shares. Snapchat filed with the Securities and Exchange Commission under the U.S. Jumpstart Our Business Startups Act.

It’s worth noting that companies with less than $1 billion in revenue can secretly file for an IPO.

The filing was made before the U.S. presidential election, which has increased uncertainty in global markets but only recently came to light.

Questions Remain

Interestingly, this is not the first time reports of Snapchat going public have emerged.

Earlier this year, it was reported that the company was seeking to raise as much as $4 billion in an initial public offering expected to take place at the start of next year. It was further suggested that the IPO could value the hugely popular media messaging service at up to $40 billion.

According to Reuters sources, the California-based company is planning to go public as soon as March and be valued at $20 billion to $25 billion.

Determined to Keep the Momentum

By going public, Snapchat seems determined not to meet the fate of services like Vine. A popular social app at one time, Vine struggled to compete with bigger players. Owner Twitter finally announced in October it would shut down the video looping service.

Snapchat has also resisted Facebook’s whopping $3 billion buyout offer, while facing stiff competition from rivals.

What This Means for Your Business

A financially robust Snapchat means a more stable platform for small business marketing and communications.

Today it’s a popular tool to target a wide range of consumers, especially younger audiences. Once the company raises more revenue, it can be expected that new features and add-ons will be introduced to entice more users.

Snapchat Photo via Shutterstock

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Shubhomita Bose Shubhomita Bose is a Staff Writer for Small Business Trends. She covers key studies and surveys about the small business market, along with general small business news. She draws on 8 years of experience in copywriting, marketing and communications, having worked extensively on creating content for small and medium sized enterprises.

One Reaction
  1. I’m still not convinced that the Facebook buyout wasn’t the most prudent move, but Snapchat has grown both their user base and ad revenues on their own. I think the valuation is very optimistic, but I hope they succeed.